This Dividend Stock Just Made a Very Bullish Crossover
When dividend stocks are on the rise, it could be time to buy them up. That's because an increase in the share price will result in a declining yield. Plus, buying before it takes off could allow investors to benefit from the potential gains earned on a rising stock, which can complement the cash flow generated from its recurring dividend payments.
That's where healthcare stock Becton, Dickinson (NYSE:BDX) finds itself in today. Its yield of 1.3% is in line with the S&P 500 average and can be a good source of regular cash flow for investors. And of late, the stock has been picking up some momentum. Earlier this month, it made a bullish crossover with its 50-day moving average climbing higher than its 200 day average. When that happens, that has the potential to trigger more momentum buying.
It could also be a sign of more optimism behind the medical device company, which could see better results ahead if there's a return to normalcy in the healthcare industry – assuming, of course, that the omicron variant doesn't derail that.
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The company is coming off an already strong quarter where for the period ending Sept. 30, 2021, its sales of $5.1 billion rose 7.3% year over year. And with expenses remaining fairly consistent, that allowed the company's bottom line to see a large 136% improvement in its earnings per share, which rose from $0.36 to $0.85. If it can build on those results, this could be an underrated dividend stock to own this year.