Becton Dickinson
produces a wide range of medical devices as well as products for the collection
and transport of diagnostic specimens, instruments for analysis and testing for
infectious diseases and research and clinical tools for the study of
cells. The company has grown profits and
dividends at a 13-16% annual pace over the last 10 years earning a 20%+ rate of
return on equity. The company should
sustain its growth via:
(1) growth of safety
needle-free products. BDX
is a world leader in this market which is growing at a 12% annual rate
globally.
(2) the safety products are sold at premium
prices yet have a very low cost of production, thereby improving margins,
(3) new product
innovation and introduction,
(4) a newly
instituted cost containment program,
(5)
international expansion,
(6)
acquisitions.
Negatives:
(1) high
unemployment reduces the demand for medical care, in particular, testing,
(2) highly
competitive industry,
(3) its
international operations subject to risk of losses from currency fluctuations,
(4) rising raw
material costs.
Statistical Summary
Stock
Dividend Payout # Increases
Yield Growth Rate Ratio Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
*over one half of companies in BDX
industry do not pay dividends
Chart
Note:
BDX stock made good progress off its March
2009 low, surpassing the downtrend off its January 2008 high (straight red
line) and the November 2008 trading high (green line). Long term, the stock is in an uptrend (blue
lines). Intermediate term, the stock is
struggling to remain in an uptrend (purple lines). The wiggly red line is the 50 day moving
average. The Aggressive Growth Portfolio
owns a full position in BDX . The upper boundary of its Buy
Value Range Sell
Half Range
10/13
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