Income investors are always on the lookout for companies that not only offer regular dividend payouts but also consistently increase those payouts over time. One such company that fits the bill is Amgen (NASDAQ: AMGN), a leading biotech firm known for its lifesaving medicines.
Over the past decade, Amgen has increased its dividends by an impressive 269%, showcasing its commitment to rewarding shareholders. The company’s forward yield of 2.83% is well above the S&P 500 average, indicating a strong dividend program. While the cash dividend payout ratio may seem a bit high at around 65%, Amgen’s recent dividend increase in the first quarter demonstrates its dedication to continued growth.
Looking ahead, Amgen’s future looks promising as it focuses on developing innovative medicines, particularly in the field of weight loss therapies. Despite facing tough competition, the company’s phase 2 asset, MariTide, shows potential for success in helping patients reduce body weight.
Furthermore, Amgen’s acquisition of Horizon Therapeutics has expanded its portfolio, with Tepezza being the first drug approved by the FDA for thyroid eye disease. This, coupled with a deep pipeline of other candidates, positions Amgen well for revenue and earnings growth in the years to come.
While investing in Amgen may not be for everyone, long-term investors seeking a top dividend growth stock should consider adding this company to their portfolio. With a solid business foundation and a commitment to innovation, Amgen looks set to deliver value to shareholders for years to come.