Big Pharma Dividend Stock BMY Could Help Turn $100,000 Into a Seven‑Figure Retirement

By Reuben Gregg Brewer – Feb 28, 2026 at 11:30PM ESTKey PointsBristol Myers Squibb is operating in the shadow of the hype surrounding GLP-1 drugs.The company has an attractive and well-supported yield.The S&P 500 index (^GSPC 0.43%) is offering a tiny 1.1% dividend yield today. The average pharmaceutical stock yields around 1.7%.

Bristol Myers Squibb (BMY +1.87%), however, is offering investors a yield of 4%. If you're a dividend investor looking to build a million-dollar nest egg, you might want to take a closer look at this drugmaker. What does Bristol Myers Squibb do?

Bristol Myers Squibb is one of the world's largest pharmaceutical companies. The sector is very competitive, and the cost of developing novel drugs is extremely high. That said, Bristol Myers Squibb has a long and successful track record. However, right now, it isn't operating in the spotlight. Image source: Getty Images. Investors are currently enamored of GLP-1 weight-loss drugs. There's a good reason for that, since weight loss is a huge market. However, Wall Street has a habit of getting myopically focused on one thing and ignoring other opportunities.

Bristol Myers Squibb, for example, is focusing on cardiovascular, cancer, and immune-related medicines -- all very important healthcare opportunities.

Bristol Myers Squibb is facing normal headwinds The stock is roughly 25% below its late 2022 highs, which is part of the attraction. There's still some recovery opportunity to go along with a well-above-average dividend yield. The payout ratio is around 70%, which is not so high that investors should be overly concerned. The company has a long history of regularly increasing its dividend, and when times are tough, the board of directors keeps dividends steady. ExpandNYSE: BMYBristol Myers SquibbToday's Change(1.87%) $1.15Current Price$62.24Key Data PointsMarket Cap$127BDay's Range$61.10 - $62.6752wk Range$42.52 - $63.33Volume381KAvg Vol14MGross Margin65.89%Dividend Yield3.99% Bristol Myers Squibb's Opdivo cancer drug will lose patent protection in 2028. It's an important medication, and investors are concerned. However, the company is working on a different delivery method for Opdivo, which could extend its patent protections. And there are other drugs in the development pipeline as well. It's important to recognize that patent expirations are a normal part of a drug company's business.

Bristol Myers Squibb has proven over time that it can deal with them as they come along. A foundation for growth The big opportunity here is buying an out-of-favor stock while it offers a relatively high yield, and letting it compound through dividend reinvestment. That's how this stock can help you turn $100,000 into a $1 million retirement nest egg.

Bristol Myers Squibb shouldn't be the only stock you buy, but it can provide a strong foundation for a more diversified portfolio. Essentially, owning this reliable dividend stock can let you take on more risk elsewhere.Read NextFeb 21, 2026 •By Justin PopeDown 25%, Should You Buy the Dip on Bristol Myers Squibb?Feb 5, 2026 •By Eric VolkmanWhy Bristol Myers Squibb Stock Topped the Market TodayJan 23, 2026 •By Reuben Gregg BrewerAI Bubble or Sustainable Growth? Here Are 2 Healthcare Companies Harnessing AI for the Long Term.Jan 23, 2026 •By Reuben Gregg BrewerShould You Forget Eli Lilly and Buy These Unstoppable Stocks Instead?Jan 21, 2026 •By Reuben Gregg BrewerThe Best Stocks to Invest $1,000 in Right NowJan 19, 2026 •By Prosper Junior Bakiny2 Dividend Stocks to Buy and Hold For 10 YearsAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedBristol Myers SquibbNYSE: BMY$62.25(+1.87%)+$1.15S&P 500 IndexSNPINDEX: ^GSPC$6,878.88(-0.43%)-$29.98*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.