Bristol Myers has struggled with growth and high debt, but its strong cash flow and earnings support the dividend. The stock yields 5.4%, much higher than the S&P 500 average. However, with a negative total return over the past five years and upcoming patent cliffs, concerns about future growth persist.

While Bristol Myers’ dividend appears safe for now, its high debt of $32 billion raises questions about its sustainability. With revenue expected to decline and patent losses looming, the stock’s payout ratio is a concern. Despite being a profitable business, future uncertainties may impact dividend safety.

Investors are cautious about Bristol Myers’ future performance due to patent expirations and growth challenges. The stock looks cheap but may be a value trap. As financials deteriorate, dividend cuts could be a possibility. Considering safer income-generating stocks may be a better option for dividend seekers.

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Read more at Yahoo Finance: Should You Buy Bristol Myers Stock for Its 5.4%-Yielding Dividend?