Core Viewpoint - The article emphasizes the importance of a company's underlying business over its yield for dividend seekers, highlighting that some companies can provide both a strong business foundation and attractive yields [1]. Group 1: Bristol Myers Squibb - Bristol Myers Squibb is a leading drugmaker with a diverse portfolio, including several drugs generating over $1 billion in annual sales [3]. - The company experienced a period of slow revenue growth due to a patent cliff but rebounded with an 8% year-over-year revenue increase to $11.9 billion in the third quarter [4]. - Older products like Eliquis continue to perform well, with sales increasing by 11% year over year to $3 billion [5]. - Newer products, particularly Reblozyl, are contributing significantly to growth, with its revenue reaching $447 million, an 80% increase from the previous year [6]. - Bristol Myers Squibb is expected to manage upcoming patent cliffs effectively, with newer products and label expansions supporting continued financial strength and dividend sustainability [7]. - The stock has a forward yield of approximately 4.2%, significantly higher than the S&P 500's 1.3%, and has increased its payouts by nearly 38% over the past five years [8]. Group 2: Novartis - Novartis is another major player in the pharmaceutical industry, with 11 medicines generating over $1 billion in sales for 2024 [9]. - The company's top-selling drug, Entresto, saw a 26% year-over-year sales increase to $1.9 billion, while Cosentyx generated $1.7 billion, up 27% from the prior year [10]. - Total sales for Novartis reached $12.8 billion, reflecting a 9% increase compared to the previous year [10]. - Although Cosentyx's U.S. patent is set to expire, Novartis has a robust pipeline with 105 programs, including new medicines like Fabhalta, which is in the early stages of commercialization [11]. - Novartis has successfully increased its dividend for 27 consecutive years, with a forward yield of about 3.7% and a cash payout ratio just under 62% [12][13].

Core Insights - Medicaid funding, approximately $900 billion annually, serves around 72 million participants and is a key area for potential healthcare reforms [1] - The 340B program is under scrutiny, with proposed reforms that may benefit biopharma companies by limiting eligibility for drug discounts, allowing profit transfer from providers to biopharma [2][5] - The specifics of these reforms remain uncertain, potentially causing volatility in the healthcare sector until more details are released [3] Medicaid and 340B Program Impacts - Proposed Medicaid funding and eligibility changes are being considered as cost-saving measures by the new administration, which could negatively affect biopharma companies with significant Medicaid drug exposure [4][5] - The top three highest-spend drugs for Medicaid in 2022 were AbbVie's Humira, Gilead's Biktarvy, and Eli Lilly's Trulicity, with Medicaid and 340B spending representing approximately 15-30% of these drugs' FY22 and FY23 revenue [6] - 340B reform is expected to serve as a tailwind for biopharma, as initiatives aim to limit access to statutory discounts [7] Potential Outcomes and Variability - The impact of 340B may vary by administration method within the same indication, affecting different therapeutics differently [7] - Spending cuts to Medicaid could negatively impact volume if they reduce coverage [8]

Core Insights - Bristol Myers Squibb (BMY) is positioned to continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 23.51% [1][3] Earnings Performance - In the last reported quarter, Bristol Myers achieved earnings of $1.80 per share, surpassing the Zacks Consensus Estimate of $1.49 per share, resulting in a surprise of 20.81% [2] - For the previous quarter, the company was expected to report earnings of $1.64 per share but delivered $2.07 per share, yielding a surprise of 26.22% [2] Earnings Estimates and Predictions - Estimates for Bristol Myers have been trending upward, influenced by its history of earnings surprises [3] - The company currently has a positive Earnings ESP of +0.43%, indicating that analysts are optimistic about its earnings prospects [6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat in the upcoming report [6] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [5] Future Outlook - The next earnings report for Bristol Myers is anticipated to be released on February 6, 2025 [6]

Company Overview - Bristol Myers Squibb (BMY) is expected to report a year-over-year decline in earnings with a projected EPS of $1.46, reflecting a decrease of 14.1% compared to the previous year [3] - Revenue for the quarter is anticipated to be $11.57 billion, which represents a slight increase of 0.8% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised down by 7.02% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for Bristol Myers is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.43%, suggesting a likelihood of beating the consensus EPS estimate [10][11] Historical Performance - In the last reported quarter, Bristol Myers exceeded the expected EPS of $1.49 by delivering $1.80, achieving a surprise of +20.81% [12] - The company has successfully beaten consensus EPS estimates in the last four quarters [13] Industry Context - In the Zacks Medical - Biomedical and Genetics industry, Qiagen (QGEN) is also expected to report earnings of $0.62 per share, reflecting a year-over-year increase of 12.7% [17] - Qiagen's revenue is projected to be $520.73 million, up 2.3% from the previous year, with an Earnings ESP of 2.76% indicating a likely earnings beat [18]

Group 1 - The article identifies 10 undervalued dividend growth stocks for further research and potential investment, emphasizing their quality scores as a basis for selection [1] - The author recommends investing in dividend growth stocks and writing options to enhance dividend income, highlighting a portfolio named DivGro that focuses on such stocks [1] - The article is part of a monthly series aimed at providing insights into dividend growth investing, stock selection, and passive income generation [1] Group 2 - The author has a beneficial long position in the shares of HSY, HRL, and VZ, indicating a personal investment interest in these stocks [2] - The article expresses the author's opinions without any compensation from companies mentioned, ensuring an unbiased perspective [2] - There is a disclaimer regarding past performance not guaranteeing future results, emphasizing the independent nature of the analysis [3]

Core Viewpoint - Many stocks, including those in the S&P 500, offer low dividend yields, averaging just 1.3%, making it challenging for income investors to generate significant returns from dividends [1] Group 1: Investment Opportunities - Bristol Myers Squibb is highlighted as a top healthcare investment with a focus on drug development, recently receiving FDA approval for Cobenfy, which could generate $7.5 billion at peak revenue, and expanding the use of Breyanzi, potentially generating $2 billion [4][5] - Target is identified as a Dividend King with over 50 consecutive years of dividend increases, currently yielding 2.9%, despite a 34% decline in share price over the past three years [6][8] - Suncor Energy, a major player in the oil and gas industry, has seen a nearly 40% increase in value over the past three years and generated CA$54.8 billion ($38.08 billion) in revenue, with a forward P/E of 14 and a dividend yield of 4.1% [9][10][11] Group 2: Financial Performance - Bristol Myers Squibb is trading at less than 9 times projected earnings for the next year, indicating potential value for investors [5] - Target has maintained flat revenue over the past three quarters but has grown earnings by over 8%, suggesting resilience despite economic headwinds [7] - Suncor's operating profit over the last 12 months was CA$9.6 billion ($6.67 billion), reflecting strong financial performance and a disciplined capital program aimed at increasing production and lowering costs [10][11]

Company Performance - Bristol Myers Squibb (BMY) closed at $60.62, reflecting a +1.59% change from the previous day's closing price, outperforming the S&P 500's daily loss of 1.46% [1] - Over the past month, BMY shares have increased by 3.45%, surpassing the Medical sector's gain of 1.84% and the S&P 500's gain of 1.08% [1] Upcoming Earnings - The company's earnings report is scheduled for February 6, 2025, with projected earnings of $1.46 per share, indicating a year-over-year decline of 14.12% [2] - Revenue is expected to reach $11.56 billion, representing a 0.76% increase compared to the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Bristol Myers Squibb are being closely monitored, as they often indicate shifts in near-term business trends [3] - Positive estimate revisions are interpreted as favorable signs for the company's business outlook [3] Zacks Rank and Valuation - The Zacks Rank system, which evaluates estimate changes, currently ranks Bristol Myers Squibb at 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 1.61% in the past month [5] - The company has a Forward P/E ratio of 8.44, which is significantly lower than the industry average of 22.83, and a PEG ratio of 2.11 compared to the industry average of 1.36 [6] Industry Context - The Medical - Biomedical and Genetics industry, which includes Bristol Myers Squibb, has a Zacks Industry Rank of 70, placing it in the top 28% of over 250 industries [7] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Bristol Myers Squibb identifies Alzheimer's disease as the largest market opportunity for its newly approved schizophrenia drug, Cobenfy, which is expected to generate billions in revenue [1][2]. Market Potential - Each treatment application for Cobenfy, including Alzheimer's-related psychosis, agitation, cognition, bipolar disorder, and autism, has multibillion-dollar potential, with Alzheimer's being the most significant market [2]. - There are nearly 6 million Alzheimer's patients in the U.S., with approximately half experiencing psychosis, making Cobenfy a potential first drug specifically approved for this condition [3]. Treatment Advantages - Current atypical antipsychotics used for treating Alzheimer's psychosis are not approved for this purpose and can increase mortality risk, whereas Cobenfy does not carry this risk [4]. - Alzheimer's agitation affects an estimated 60% to 70% of Alzheimer's patients, indicating a substantial need for effective treatment options [4]. Development Timeline - Bristol Myers Squibb plans to release initial late-stage trial data for Cobenfy in treating Alzheimer's-related psychosis by the end of the year, ahead of previous expectations [5]. - Phase three trials for Alzheimer's agitation, cognition, and bipolar disorder are expected to start in 2025, with autism studies commencing in 2026 [5]. Financial Projections - JPMorgan analyst estimates Cobenfy sales could reach approximately $5 billion by 2030, with peak sales potential in the $10 billion range across various treatment applications, providing significant revenue support for Bristol Myers Squibb amid patent expirations of top-selling treatments [6].

Key Points Company and Industry Information 1. **Company**: Bristol-Myers Squibb Company (NYSE:BMY) 2. **Event**: 43rd Annual J.P. Morgan Healthcare Conference 3. **Date**: January 13, 2024 4. **Time**: 10:30 AM ET 5. **Participants**: - Chris Boerner - Chairman and Chief Executive Officer of Bristol-Myers Squibb - Chris Schott - JPMorgan [1] Core Views and Arguments 1. **CEO's First Year**: Chris Boerner highlighted his first year as CEO, expressing pride in the company's accomplishments. 2. **Roadmap for Growth**: The company outlined a roadmap for a multi-year journey to reshape BMS with the goal of delivering sustained top-tier growth and driving long-term shareholder value. 3. **Sector Growth**: The company aims to be one of the fastest-growing companies in the sector by the end of the decade. 4. **Progress Update**: Boerner mentioned that the company is one year into this journey and closer to achieving its objectives. [4][5] Other Important Content 1. **Forward-Looking Statements**: Boerner mentioned that some of the statements made during the presentation would be forward-looking. 2. **Looking Forward**: Boerner expressed excitement about the discussions planned for the day. [5][3]

Company Overview - Bristol-Myers Squibb Company is participating in the 43rd Annual J.P. Morgan Healthcare Conference, with CEO Chris Boerner leading the presentation [1][2][3] - The company aims to reshape its operations with a focus on sustained top-tier growth and long-term shareholder value [5] Strategic Goals - The overarching goal is to become one of the fastest-growing companies in the sector by the end of the decade, with a multi-year roadmap laid out at the previous year's conference [5] - The company is one year into its journey towards achieving its growth objectives and is optimistic about its progress [5][4]