Bristol Myers Squibb Yields Over 4%. Can Its Dividend Survive 2027?
A blockbuster blood thinner is about to lose $1.5 billion to $2 billion in sales, and the debt pile hasn't gone away. Retirees counting on Bristol Myers Squibb's payout need to know which numbers actually matter before 2027 arrives.
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Bristol Myers Squibb (NYSE:BMY | BMY Price Prediction) yields 4.08%, and it reached that level the healthy way. Shares have climbed 40.82% over the past year to $62.67, so price strength has been pushing the yield lower. Retirees need to know whether the $2.52 annual payout can get through a 2027 Eliquis step-down while the company carries heavy debt.
Coverage Leaves Plenty of Cushion
Management expects 2026 non-GAAP EPS of $6.35 to $6.55, so the dividend uses about 38% to 40% of earnings. The company cut that range from $6.75-$7.00 because of a $(0.60) charge for licensing deals and acquired pipeline assets.
Cash coverage is just as strong. In 2025, operating cash flow of $14.16 billion minus $1.31 billion in capital spending left $12.85 billion of free cash flow. Dividends of $5.05 billion took about 39% of it. Through the first nine months of 2026, dividends took about 50% of free cash flow, and Q3 operating cash flow fell 33.45% year over year. CFO David Elkins was clear about where the dividend ranks:
“Business development remains a priority, and we are regularly evaluating opportunities in the therapeutic areas we know best while continuing to return cash to our shareholders through our commitment to the dividend.”
Debt Is the Pressure Point to Track
As of September 30, total debt was $44.81 billion, and cash was $9.57 billion. The trend is improving. Debt was at $51.2 billion at the end of 2024 and $47.14 billion at the end of 2025. Management has not set a debt-reduction target, and about $5 billion of buyback authorization went unused all year.
Eliquis Cliff Lands in 2027
Elkins said the company expects a $1.5 billion to $2 billion Eliquis step-down in 2027. Older drugs are already fading: Revlimid fell 47%, and Pomalyst dropped 81%. The Growth Portfolio is making up the difference, rising 12% to $7.66 billion, and the company targets $2 billion in cost savings by the end of 2027. CEO Christopher Boerner said:
“We remain highly disciplined in ensuring our cost structure is aligned with our revenue base.”
Where AbbVie and Pfizer Leave BMY
AbbVie (NYSE:ABBV) shows what getting through a patent cliff can look like. Humira sales fell 31.2% while Skyrizi grew 22.7%, and AbbVie raised its quarterly dividend 5.2% to $1.82. Its yield is only 2.28%. CEO Robert Michael said:
“Given our strong outlook and significant momentum, we are once again increasing AbbVie’s full-year guidance and raising our quarterly dividend.”
BMY’s most recent raise was smaller: 1.6% to $0.63, its 17th consecutive annual increase. Pfizer (NYSE:PFE) pays a higher 5.71%, but its quarterly payout has been stuck at $0.43 since early 2025. Pfizer is also skipping buybacks in 2026 while it pays down debt.
Verdict: Built to Last, Slow to Grow
The dividend looks durable. Payout ratios near 40%, a debt load that keeps shrinking, and 94 consecutive years of payments give it more buffer than the Eliquis headlines suggest. The cost of that safety is slow growth: expect only small increases through 2027 while debt reduction and deals compete for cash. Investors should watch the Milvexian stroke data due before year-end and the atrial fibrillation results expected in the first quarter of next year.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
