1 High-Yield Dividend Stock That's Too Cheap to Ignore

By Prosper Junior Bakiny – Mar 21, 2026 at 3:00PM ESTKey PointsBristol Myers Squibb operates in a defensive industry that can navigate challenging periods fairly well.Despite some recent headwinds, the company could perform well over the long run.The stock offers a high yield and consistent dividend growth. Investors are dealing with significant market volatility amid trade wars, geopolitical tensions, etc. Some are worried about inflation rising, a potential market downturn, or perhaps even a recession. In an environment like this, it helps to invest in companies that can perform relatively well regardless of market or economic conditions. Corporations with excellent dividend programs are especially worth a second look right now. In that spirit, let's consider a solid dividend stock whose shares look attractive: Bristol Myers Squibb (BMY 1.08%). Image source: Getty Images. It could be a steady wealth compounder Bristol Myers is a leading company in a defensive pharmaceutical industry that's built to handle the toughest environments. Not only are lifesaving drugs some of the ultimate "essential goods," but because of the nature of the industry, and the fact that third-party payers foot much of the bill for prescription medicines, demand remains fairly consistent through good and bad economic times. Bristol Myers' portfolio spans several areas, including oncology -- where it is a leader -- immunology, rare diseases, and others. The company has encountered some troubles in recent years, particularly due to patent cliffs. Revenue growth hasn't been strong as a result. In the fourth quarter, Bristol Myers' sales increased by just 1% year over year to $12.5 billion. ExpandNYSE: BMYBristol Myers SquibbToday's Change(-1.08%) $-0.63Current Price$57.48Key Data PointsMarket Cap$117BDay's Range$56.91 - $58.5552wk Range$42.52 - $62.89Volume66MAvg Vol14MGross Margin65.89%Dividend Yield4.33% However, Bristol Myers has an innovative engine that should allow it to launch newer products and eventually move beyond generic or biosimilar competition for older drugs. The company is already slowly doing so, thanks to a growth portfolio mostly composed of therapies approved since 2019 or so. These include a new, subcutaneous formulation of Bristol Myers' famous and highly successful oncology franchise, Opdivo. Even with the old version set to lose patent exclusivity in a couple of years, this franchise, which has been one of Bristol Myers' growth drivers for a while, should continue contributing. How is the company's growth portfolio performing? In the fourth quarter, it reported $7.4 billion in sales, up 16% year over year. Top-line growth should bounce back as the impact from off-patent medicines on the company's financial results continues to fade and newer products gain more traction and earn label expansions So, Bristol Myers should be in good shape, even in a highly volatile market. What about the company's dividend? Bristol Myers offers a juicy forward yield of 4.2%, which is well above the S&P 500's average of 1.2%. The company has increased its dividends by 65.8% over the past 10 years, and its cash payout ratio of 39.3% leaves ample room for more dividend growth. Lastly, Bristol Myers' valuation looks reasonable right now. The company is trading at 9.5x forward earnings, well below the healthcare sector's forward price-to-earnings average of 17.1. In short, Bristol Myers is a stable company capable of delivering strong financial results over the long term -- even as the market and the economy experience downturns -- while rewarding shareholders with a growing dividend. In today's precarious environment, that may be exactly what the doctor ordered. Read NextMar 18, 2026 •By Keith SpeightsBristol‑Myers Squibb: The Boring Dividend Stock I'd Happily Hold Through Any CrashMar 8, 2026 •By Eric VolkmanWhy Bristol Myers Squibb Stock Crushed it in FebruaryMar 5, 2026 •By Prosper Junior Bakiny2 Top Healthcare Dividend Stocks to Buy and Hold ForeverFeb 28, 2026 •By Reuben Gregg BrewerBig Pharma Dividend Stock BMY Could Help Turn $100,000 Into a Seven‑Figure RetirementFeb 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 TodayAbout the AuthorProsper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks.

Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.TMFPBakinyStocks MentionedBristol Myers SquibbNYSE: BMY$57.48(-1.08%)-$0.63*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.