January 30, 2026 a 03:31 am
AMGN: Dividend Analysis - Amgen Inc.
Amgen Inc., with its robust dividend profile and expansive reach in the biotechnology sector, presents a compelling case for dividend-seeking investors. With a steady history of dividend increases and a healthy yield, Amgen stands out as a promising candidate in the pharmaceutical and biotech industries. However, investors should be mindful of its debt levels and payout ratios when evaluating its long-term dividend sustainability.
📊 Overview
Amgen operates in the Biotechnology sector, maintaining a consistent dividend history over 16 years. The dividend yield currently stands at 2.82%, marking a steady source of income for shareholders.
| Metric | Value |
|---|---|
| Sector | Biotechnology |
| Dividend yield | 2.82 % |
| Current dividend per share | 8.93 USD |
| Dividend history | 16 years |
| Last cut or suspension | None |
🗣️ Dividend History
Amgen's dividend history showcases a reliable income stream with consistent payments, vital for assessing financial consistency and reliability.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 2.52 |
| 2025 | 9.52 |
| 2024 | 9.00 |
| 2023 | 8.52 |
| 2022 | 7.76 |
📈 Dividend Growth
The growth of Amgen's dividend indicates the company's ability to increase shareholder returns consistently, highlighting financial health and growth potential.
| Time | Growth |
|---|---|
| 3 years | 7.05 % |
| 5 years | 8.27 % |
The average dividend growth is 8.27 % over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Understanding payout ratios is crucial for evaluating if a company's dividends are sustainable in the long term.
| Key figure | Ratio |
|---|---|
| EPS-based | 68.60 % |
| Free cash flow-based | 41.68 % |
An EPS payout ratio of 68.60 % indicates a well-covered dividend through earnings, while a FCF payout ratio of 41.68 % suggests strong cash generation backing dividends.
✅ Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency metrics helps assess Amgen's ability to cover dividends and invest for growth.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 6.22 % | 4.78 % | 7.37 % |
| Earnings Yield | 4.64 % | 4.36 % | 2.90 % |
| CAPEX to Operating Cash Flow | 9.63 % | 13.13 % | 9.54 % |
| Stock-based Compensation to Revenue | 1.52 % | 1.53 % | 1.59 % |
| Free Cash Flow / Operating Cash Flow Ratio | 90.37 % | 86.87 % | 90.46 % |
The overall cash flow stability and capital efficiency indicate Amgen's capability to continue investments while maintaining dividend payouts.
⚠️ Balance Sheet & Leverage Analysis
In-depth leverage and balance sheet analysis offers insights into Amgen's financial stability and potential risks.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 10.64 | 10.37 | 10.23 |
| Debt-to-Assets | 0.60 | 0.67 | 0.65 |
| Debt-to-Capital | 0.91 | 0.91 | 0.91 |
| Net Debt to EBITDA | 2.57 | 3.63 | 3.60 |
| Current Ratio | 1.41 | 1.65 | 1.26 |
| Quick Ratio | 1.10 | 1.13 | 0.95 |
| Financial Leverage | 17.79 | 15.59 | 15.63 |
Amgen's leverage metrics suggest a high level of debt, requiring careful monitoring of interest coverage and liquidity ratios.
💼 Fundamental Strength & Profitability
Reviewing profitability and R&D expenditure helps understand Amgen's competitive positioning and efficiency in capital utilization.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 178.97 % | 107.78 % | 69.59 % |
| Return on Assets | 10.06 % | 6.91 % | 4.45 % |
| Margins: Net | 24.89 % | 23.83 % | 12.24 % |
| Margins: EBIT | 33.25 % | 38.06 % | 23.23 % |
| Margins: EBITDA | 46.23 % | 52.50 % | 39.96 % |
| Margins: Gross | 75.66 % | 70.15 % | 61.53 % |
| Research & Development to Revenue | 16.84 % | 16.97 % | 17.84 % |
Amgen demonstrates strong profitability margins, though the decline in ROE should be tracked to assess future performance.
📌 Price Development
⭐ Dividend Scoring System
Our proprietary dividend scoring system evaluates Amgen's performance across crucial criteria to gauge dividend sustainability and growth potential.
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 31/40
📆 Rating
Amgen Inc. stands out as a solid investment in the biotechnology sector, offering a stable dividend yield backed by consistent past growth and a commitment to future increases. While its leverage metrics require attention, its strong cash flow coverage and commitment to returning capital make it a commendable choice for dividend-focused portfolios. Potential investors should balance these positives with an understanding of industry cycles and the company’s positioning amid competitive pressures.