Becton, Dickinson and Co. (NYSE:BDX)

International growth offsets U.S. slowing growth.

Past history; good management

dividend aristocrat with buybacks!

Product diversification,, product quality vs. competition,, good mngt. a lot of smat people work at BDX,, prior 2-4 market laggard.

The population is getting older and fatter. Diabetes is an epidemic. Everybody hates needles, but BDX has been a leader for years with a consistently solid dividend yield to boot.

this was a real-money pick for the Inflation Protected Income Growth Portfolio. I apparently forgot to click "Enter my pick" for the CAPSCall associated with the selection article.
Article can be found here: http://www.fool.com/investing/dividends-income/2013/01/28/why-becton-dickinsons-stock-is-worth-owning.aspx

-Chuck
Disclosure: I own shares of Becton, Dickinson, & Company

“When Warren lectures at business schools, he says, “I could improve your ultimate financial welfare by giving you a ticket with only 20 slots in it so you had twenty punches – representing all the investments that you get to make in a lifetime. And once you’ve punched through the card, you couldn’t make any more investments at all. Under those rules, you’d really think carefully about what you did, and you’d be forced to load up on what you’d really thought about. So you’d do much better.”" – Charlie Munger

In the spirit of this idea, I made 5 initial punches/picks, and will thereafter make a maximum of 1 pick per fiscal quarter until all 20 punches have been used. I expect to use up all punches over the next 5-7 years. I will compare the performance of this acct to my more "active" CAPs account, and see if this maxim proves correct.

Becton, Dickinson, & Company (BDX), founded in 1897, is a rock solid, wide moat company in the healthcare industry that makes surgical tools, needles, and other medical products. I see today’s current healthcare fears as a great opportunity to be greedy and buy this wonderful business at a fair-to-cheap price.

Over the 5 years, BDX has averaged very impressive 17% annual returns on capital. (89th percentile) Over past 10 years, BDX never returned less than 11% returns on capital. (11% in 2004) BDX has grown earnings at a 10yr avg of 14.2% and successfully grew earnings 9 out of the past 10 years. (2004 being the only down year) Free cash flow has grown at 9.5% compounded over the past decade.

I’ll conservatively forecast EPS growth at 9% per yr (40% lower BDX's 10 yr avg) over the next 3-5 years. Adding in 2% per year in reinvested dividends, I’m expecting 11% compounded annual returns going forward, assuming P/E remains about the same.

BDX is currently selling at 14x earnings, and more importantly, 14x free cash flow. I think that’s a great price for this 115 year old company with a bright future.

Becton, Dickinson, & Company (BDX), has prospered through two World Wars, the Great Depression, about 15 recessions, and emerged from it all as a top company. I don't think Obamacare or this recession is going to be the end of that success. Outperform.

lidean picked Becton Dickinson.

Div

Nice margins, ROE, cash flow, low payout ratio, and aggressive dividend growth all point to a long-term healthcare winner.

Yield 2.42%. DGR 9%. PE 14. Normal PE 17. EPS Growth 10%. 40 year Dividend Champion. Undervalued. Position held in Brokerage account. Reinvesting dividends. Intend to increase position using cash dividend payouts from other stocks and new investment funds.

Bought shares in real life.

under 20 moving average on monthly chart

Mungo rec

242. Becton Dickinson (NYSE: BDX) looks cheap to me. Target: $80-$85. I'm betting CAPS points on this one. This qualifies as a no brainer as far as I can tell. They've been consistent in the past and their present price does not reflect that combined with a growth profile heading forward. This is a hardcore buy if you can get it below $70, meaning that you should consider it as a core position in your portfolio to trade around. The dividend is admirable but it won't attract the high yield investing subclass that seems to be growing as the babyboomers retire.

http://beta.fool.com/bradford86/2012/01/09/price-market-part-35/

Just bought this in my IRA (72.75). Seems way over sold on a risk/reward basis if you ask me.

12/30/11

Trading at 11.7 times 2013 earnings, BDX is pretty cheap. I'm going to predict they trade up 20% to $89 in the next 12 months from the currently level of $75. Projected 10% earnings growth for 2013 is modest, but they should receive a higher PEG for achieving steady 9-12% earnings growth for several years to come. I love that have also increased the dividend consistently over the past 28 years. They currently yield 2.40% and pay out $1.80 per year. This stock makes a great core holding to any portfolio.

12/13