Jensen Investment Team Sells Position in Becton Dickinson
August 2023
The investment team has chosen to sell long-term holding Becton Dickinson (BDX) from the Jensen Quality Growth Strategy due to the company’s return on equity (ROE) falling below our 15% threshold in its most recent fiscal year.
Becton Dickinson is a leading global supplier of medical devices and equipment. Key business segments include needles and syringes, catheters, and infusion pumps.
We retain a positive view on Becton Dickinson’s business. However, the company’s ROE was impaired by a series of equity issuances over the past several years. To qualify for our investible universe, a company must continue to achieve a 15% ROE each year for 10 consecutive years as determined by the investment team. We began reducing the position in late 2022 and sold the remaining stake in July 2023.
Please click here to view a list of the Jensen Quality Growth Strategy’s current holdings.
Strategy holdings are subject to change and should not be considered recommendations to buy or sell any security.
The discussion of the specific security identified in this article is solely intended to illustrate the application of our investment approach. Our views expressed herein are subject to change and should not be construed as investment advice and are not designed or intended as a basis or determination for making any investment decision for any security. This information is current as of the date of this material and is subject to change at any time, based on the market and other conditions. Past performance is no guarantee of future results.
Jensen Investment Management, Inc., is an investment adviser registered under the Investment Advisers Act of 1940. Registration with the SEC does not imply any level of skill or training.
© 2023 Jensen Investment Management
Related Insights
Jensen News & Insights
The railway industry might not seem like a hotbed of cutting-edge technological innovation, but there is much to learn from Canadian National Railway.
How AI’s disruptive potential is impacting Accenture and Intuit, two companies in the Jensen Quality Growth and Global Quality Growth Strategies.
There are growing hopes that GLP-1 agonist drugs could have a transformative impact. However, markets may be getting ahead of themselves.
What is the opportunity in the global markets? Portfolio Managers Allen Bond, Kevin Walkush and Jeff Wilson answer questions about the Jensen Global Quality Growth Strategy.
While inflation feels more tolerable now than it did in 2022, it is still high. As the storm clouds have not fully dispersed, at Jensen, we counsel investors to remain vigilant — and their advisors even more so.
The Jensen Investment Team recently sold Johnson & Johnson from the Global Quality Growth Strategy.
The Jensen Investment Team adds Waters Corporation (WAT), an analytical laboratory instrument and software company, to the Global Quality Growth Strategy.
Jensen proudly commemorates its 35th anniversary. Since its inception in 1988, Jensen has exemplified a commitment to excellence, a client-first approach and the fostering of a team-oriented culture.