Could Bristol-Myers Squibb Stock Help You Retire A Millionaire?
For a business to seriously help its investors reach millionaire status before they retire, either its share price must consistently compound or it must pay a significant dividend regularly and steadily -- or (preferably) both. The shorter the time between the aspiring millionaire investor and their retirement date, the faster that compounding process will need to occur for the stock to be a worthwhile purchase.
For big pharma companies like Bristol-Myers Squibb (NYSE: BMY), the process of making their shareholders richer is based on their ability to repeatedly develop and commercialize lucrative new medicines. At a glance, this company looks like it would fit the bill as a wealth-building investment, but there are a few complications to the story.
Presently, Bristol-Myers Squibb has more than 30 programs in phase 3 development, including many candidates in key segments like oncology and immunology. Most of those programs aim to win new indications for medicines that are already approved and commercialized as treatments for other conditions, so it's working hard to squeeze more revenue and earnings out of its earlier research investments. Through 2025, management is anticipating the company's top line will increase at a compound annual rate of roughly 1% to 7%.
Source Fool.com
