We recently published a list of the 10 Best Dividend Monarchs to Invest in Now. In this article, we are going to take a look at where Becton, Dickinson and Company (NYSE:BDX) stands against other best dividend monarchs.
Dividend-focused investors are generally well-acquainted with terms like Dividend Aristocrats and Dividend Kings, but many may not be aware of a lesser-known group called Dividend Monarchs. While they fall under the broader category of dividend growth stocks, they carry a distinct title. The Dividend Monarchs Index highlights US companies that have managed to raise their dividends consistently for at least 50 consecutive years. These firms have weathered decades of market ups and downs, showcasing both resilience and steady performance in terms of dividend growth and stock returns. As an evolution of the well-known S&P Dividend Aristocrats Index Series, the S&P Dividend Monarchs Index sets an even higher standard, recognizing a more exclusive tier of long-term dividend payers.
S&P Dow Jones Indices has been a pioneer in dividend growth strategies since the 1980s, initially tracking US companies with at least 10 years of dividend increases. As the number of such companies grew, the threshold was raised to 25 years, forming the basis for the Dividend Aristocrats Index, launched in 2005. This index became a widely recognized benchmark, eventually expanding to include mid- and small-cap stocks as well as global markets. By April 2023, over $40 billion in ETF assets tracked these indices. With a rising number of companies now surpassing 50 consecutive years of dividend growth across different market caps, S&P introduced the Dividend Monarchs Index in 2023 to reflect this new elite group.
The key distinction between Dividend Kings and Dividend Monarchs lies in the inclusion criteria. While both require at least 50 consecutive years of dividend increases, Dividend Monarchs must also meet specific standards set by S&P. To qualify for the Dividend Monarchs Index, a company must be part of the Composite 1500, have a float-adjusted market capitalization of at least $2 billion, maintain a three-month average daily trading value of $5 million or more, and consistently grow its dividend over five decades. This added layer of eligibility makes Monarchs a more selective, index-based group.
Companies that meet the tough 50-year dividend growth requirement tend to show strong profitability and financial stability. According to an S&P Dow Jones Indices report dated April 30, 2023, the Dividend Monarchs Index outperformed both the broader market and the S&P Composite in terms of return on equity (ROE) and showed more consistent earnings. The report also noted that, based on back-tested data since January 31, 2018, the Dividend Monarchs Index displayed more defensive traits—offering lower volatility and smaller drawdowns than the S&P 500 during market declines.
Although the Dividend Monarchs Index is a relatively new concept with only five years of back-tested performance, it has grown significantly during that time, expanding from 11 to 35 constituents. Despite the index’s short history, the companies included have a track record of at least 50 consecutive years of dividend growth, dating as far back as 1972. According to data presented by S&P Dow Jones Indices, the performance of these companies—measured through both price returns over the past 50 years and total returns since December 1989—has generally outpaced that of the broader market. This suggests that many of the index’s constituents have delivered stronger long-term results.
A surgeon performing a procedure in an operating room using a medical device supplied by the company.
Our Methodology
For this list, we scanned the holdings of the S&P Dividend Monarchs Index, which tracks the performance of companies with 50 consecutive years of dividend growth. From that list, we picked 10 stocks that were most popular among hedge funds, as per Insider Monkey’s Q4 2024 database. The stocks are ranked in ascending order of the hedge funds having stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Becton, Dickinson and Company (NYSE:BDX)
Number of Hedge Fund Holders: 56
Becton, Dickinson and Company (NYSE:BDX) is an American medical device company, headquartered in New Jersey. In addition to medical equipment, the company also specializes in instrument systems and reagents. In its fiscal Q1 2025 earnings report, the company mentioned that it is continuing its transformation under the BD 2025 strategy, with the planned separation of Biosciences and Diagnostic Solutions building on the progress already made. According to the company, the move aims to create substantial value for both the newly streamlined BD and the separated Biosciences and Diagnostic Solutions businesses, allowing each to concentrate more fully on driving growth, advancing innovation, and achieving operational excellence within their specific markets.
Becton, Dickinson and Company (NYSE:BDX) reported revenue of $5.1 billion in Q1 2025, up nearly 10% from the same period last year. The revenue also beat analysts’ estimates by $59.6 million. The US market represented over $3 billion of the total revenue, which also showed a 12% growth on a YoY basis. BD Medical remained the winner among the other segments, generating $2.6 billion in revenues, up over 17% from the prior-year period.
Becton, Dickinson and Company (NYSE:BDX) ended the quarter with $711 million available in cash and cash equivalents. It also generated $693 million in operating cash flow. This strong cash position has enabled the company to maintain its dividend policy over all these years. BDX has been rewarding shareholders with growing dividends for the past 53 years, which makes it one of the best Dividend Monarchs on our list. Currently, it offers a quarterly dividend of $1.04 per share and has a dividend yield of 2.05%, as of April 15.
Overall, BDX ranks 8th on our list of the best Dividend Monarchs to invest in. While we acknowledge the potential of BDX as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than BDX but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.
