That’s a fair question.If he had invested $1,000 in a pharmaceutical expert. bristol myers squib (NYSE:BMY) Five years ago in 2019, how much money do you have now? You might ask if you’re thinking about investing in a company or holding its shares for a while.
The answer is: From his initial $1,000 investment, he now has $1,324. If it seems very good to you, then you shouldn’t do it. This corresponds to an average annual increase of approximately 5.8%. S&P500 The index for America’s 500 largest blue-chip companies averaged 12.9%.
It’s always good to compare the performance of your investments to a benchmark, and the S&P 500 is a common benchmark for large-cap stocks. These results indicate that you would have been much better off investing in the S&P 500 rather than Bristol-Myers Squibb during this period. (For comparison, the long-term average annual growth rate for the S&P 500 is nearly 10%.)
That’s bad news for those people. have That’s because the stock is down 35% from its recent 52-week high, and the dividend yield is a hefty 4.91%. Even better, its dividend has grown by an average of about 8% per year over the past five years.
However, remember that how the stock price has changed is far more important than how the stock price has changed. I intend on doing it. Investors need to look forward rather than backward, as Bristol-Myers Squibb faces several challenges, including expiring patent protection for some of its major distributors. The company actually beat Wall Street’s expectations in its last earnings report, but the stock fell on management’s subdued expectations.
Of course, you need to do your own research and think about it. You may then decide that this is a great long-term investment opportunity that can yield significant income.
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Serena Maranjian holds a position at Bristol-Myers Squibb. The Motley Fool has a position in Bristol-Myers Squibb and recommends Bristol-Myers Squibb. The Motley Fool has a disclosure policy.
Originally published by The Motley Fool If you invested $1,000 in Bristol-Myers Squibb five years ago, how much would you have earned today?
