Could Cash Machine Becton Dickinson Stock Be Your Next Buy?

Becton Dickinson (BDX) could be a good pick for your portfolio, with its high cash yield, good fundamentals, and discounted valuation. Companies like this can use cash to fuel additional revenue growth, or simply pay their shareholders through dividends or buybacks. Either move makes them attractive to the market

What Is Happening With BDX

BDX stock is currently trading at P/S (Price-to-Sales) ratio that is at a meaningful discount to its 3-month and 2-year highs, and also below its 3-year average.

The stock may not reflect it yet, but here is what’s going well for the company. Becton Dickinson completed its Life Sciences business spin-off in February 2026, creating a focused MedTech entity targeting a $70B+ market projected to grow at 5%. Recent product innovation strengthens its pipeline, including FDA clearance for Surgiphor 1000mL surgical irrigation in March 2026 and the AI-enabled BD Incada™ Connected Care Platform launched in October 2025. A $110M investment in January 2026 expands U.S. prefillable syringe production, meeting rising biologic drug demand.

BDX Has Good Fundamentals

• Good Cash Yield: Not many stocks offer free cash flow yield of 5.4%, but Becton Dickinson stock does
• Strong Margin: Last 12 month operating margin of 14.2%
• Growth: Last 12 revenue growth of 6.2% – low growth, but this selection is all about high yield and margin
• Valuation: BDX stock currently trading at 30% below 2Y high, 19% below 1M high, and at a PS lower than 3Y average.

Below is a quick comparison of BDX fundamentals with S&P medians.

*LTM: Last Twelve Months

But What Is The Risk Involved?

While BDX stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. BDX took some hits in past crises despite its strong fundamentals. It fell nearly 47% in the Dot-Com bust and dropped about 34% during the Global Financial Crisis. The Covid pandemic wasn’t kind either, with a 30% dip. Even the smaller shakes—like the 2018 correction and recent inflation shock—blew past 20% declines. Good companies reduce risk but won’t dodge sharp sell-offs when panic sets in.

For more details and our view, see Buy or Sell BDX Stock.

Stocks Like BDX

Not ready to act on BDX? Consider these alternatives:

1. Elevance Health (ELV)
2. IQVIA (IQV)
3. Constellation Brands (STZ)

We chose these stocks using the following criteria:

1. Greater than $2 Bil in market cap
2. Dipped last month & meaningfully below 2Y high
3. Current P/S < last few year average
4. Strong operating margin with no instances of large margin collapse
5. High free cash flow yield

A portfolio of stocks with the criteria above would have performed has follows since 12/31/2016:

• Average 6-month and 12-month forward returns of 10.4% and 20.4% respectively
• Win rate (percentage of picks returning positive) of about 74% for 12-month period
• Strategy consistent across market cycles

Smart Investing Begins With Portfolios

Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.

Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.