With rates at historic lows, companies can borrow very cheaply. IBM sold three-year bonds at 1% and Microsoft and Wal-Mart managed to go below 1%. Even Google got into the act. Corporations are basically raising capital via near-interest-free loans. Why not?
Many people believe that BDX shares are undervalued. Using cheap money to mop up cheap shares is smart, and what BDX is doing represents the ideal share buyback scenario.