The Dividend Daily

Biotech giant Baxter International Inc. (BAX) on Tuesday said it entered into an agreement to buy Swedish dialysis products maker Gambro AB for around $4 billion in cash.

Baxter said it would finance the deal through a combination of cash on hand as well as debt. The company commented via press release, “The acquisition gives Baxter a comprehensive dialysis product portfolio, complements Baxter’s global home dialysis offerings, and positions the company to better meet the evolving needs of the large and growing dialysis market.”

BAX also noted it intends to maintain its current dividend payout ratio of around 40% following the transaction.

Baxter shares were mostly flat in premarket trading Tuesday.

The Bottom Line
Shares of Baxter International (BAX) have a 2.74% dividend yield, based on last night’s closing stock price of $65.80. The stock has technical support in the $61-$63 price area. If the shares can firm up, we see overhead resistance around the $68-$69 price levels.

Baxter International Inc. (BAX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.