This Big Pharma Stock Is Enriching Shareholders With Its Dividend. But Is It a Buy?

Two signs that a company is focused on creating significant value for its shareholders are when the company boosts its dividend and when it repurchases its shares at attractive valuations.

Pharma stock Bristol Myers Squibb (NYSE: BMY) recently announced a 10.2% hike in its quarterly dividend to $0.54 per share. And if that wasn't enough to please shareholders, the company also authorized an additional $15 billion in share buybacks -- or nearly 11% of its $139 billion market capitalization.

This ambitious capital return plan raises two questions: Can the company afford it? And is the stock currently a buy? Let's dig into Bristol Myers Squibb's cash flow capabilities, balance sheet, and valuation to try to answer these questions.

Source Fool.com