Bristol Myers Squibb's Growth Portfolio Now Brings In $7.7 Billion a Quarter. Here's Why That Changes the Stock's Story.

Bristol Myers Squibb (BMY) is currently navigating a unique challenge in the pharmaceutical industry. As patent protections for its older drugs expire, the company stands to lose significant revenue. This has led to concerns among investors about the safety of its current dividend payments. Despite this, Bristol Myers Squibb's newer drug portfolio, known as its growth portfolio, is already generating substantial revenue, totaling $7.66 billion in the third quarter of 2026, which surpasses the $5.42 billion generated by its legacy portfolio.

Investors should note that while the legacy portfolio generates $5.42 billion, a significant portion, $4.69 billion, comes from a single drug, Eliquis. The patent for Eliquis expires in 2028, indicating more time for Bristol Myers Squibb to bolster its growth portfolio. The company maintains a reasonable dividend payout ratio of 55%, and its board has a track record of supporting dividends during challenging times.

While risk-averse investors may want to tread cautiously, more aggressive income investors might find Bristol Myers Squibb an attractive addition to a diversified dividend portfolio due to its high yield in an industry that typically offers lower yields.