March 19, 2026 a 07:32 am
AMGN: Dividend Analysis - Amgen Inc.
Amgen Inc., a well-established biotech company, showcases a robust dividend profile. With consistent growth in dividend payouts over the past years, it offers attractive dividends to its investors, reflecting strong financial health and shareholder return focus.
📊 Overview
Amgen Inc. operates in the Biotech sector, renowned for its innovative approach to healthcare solutions. As of the latest data, the dividend yield stands at 2.79%, with a current dividend per share of $9.52. Amgen exhibits a strong dividend history over 16 years without significant cuts, indicating stability.
| Detail | Value |
|---|---|
| Sector | Biotech |
| Dividend yield | 2.79% |
| Current dividend per share | 9.52 USD |
| Dividend history | 16 years |
| Last cut or suspension | None |
📉 Dividend History
The history of dividend payments provides insights into the company's commitment to returning value to shareholders. A stable and growing dividend history is often a sign of a company's financial strength and management's confidence in its business model.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 5.04 |
| 2025 | 9.52 |
| 2024 | 9.00 |
| 2023 | 8.52 |
| 2022 | 7.76 |
📈 Dividend Growth
Evaluating dividend growth offers insights into the future potential of yield increases. Over the last 3 and 5 years, Amgen has grown its dividends by 7.05% and 8.27% respectively, indicating a steady upward trend in returns offered to investors.
| 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
The payout ratio is a crucial indicator of dividend sustainability. A company needs to balance its earnings and free cash flow to meet dividend obligations while maintaining growth.
| Key figure ratio | Percent |
|---|---|
| EPS-based | 66.57% |
| Free cash flow-based | 63.38% |
With an EPS payout ratio of 66.57% and a free cash flow payout of 63.38%, the dividends appear sustainable, though dependent on continued earnings growth.
💵 Cashflow & Capital Efficiency
Cashflow metrics are vital in assessing the company's operational efficiency and capacity to fund both dividends and growth investments.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 4.78% | 7.37% | 4.60% |
| Earnings Yield | 4.36% | 2.90% | 4.38% |
| CAPEX to Operating Cash Flow | 13.13% | 9.54% | 18.66% |
| Stock-based Compensation to Revenue | 1.53% | 1.59% | 1.00% |
| Free Cash Flow / Operating Cash Flow Ratio | 0.87 | 0.90 | 0.81 |
Amgen maintains adequate cash flow with capital efficiency, enabling sustainable dividends while keeping investment for future growth intact.
⚠️ Balance Sheet & Leverage Analysis
Understanding leverage and debt levels is essential for evaluating financial risk. A resilient balance sheet results in stable operations and long-term viability.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 10.37 | 10.23 | 6.31 |
| Debt-to-Assets | 66.51% | 65.44% | 60.28% |
| Debt-to-Capital | 91.20% | 91.09% | 86.31% |
| Net Debt to EBITDA | 3.63 | 3.60 | 2.87 |
| Current Ratio | 1.65 | 1.26 | 1.14 |
| Quick Ratio | 1.13 | 0.95 | 0.90 |
Amgen balances its high leverage with strong cash flow and solid operational metrics, mitigating potential financial risks.
📈 Fundamental Strength & Profitability
Profitability metrics provide insights into operational effectiveness and value creation for shareholders.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 107.78% | 69.59% | 89.06% |
| Return on Assets | 6.91% | 4.45% | 8.51% |
| Margins: Net | 23.83% | 12.24% | 20.98% |
| Margins: Gross | 70.15% | 61.53% | 70.80% |
| Research & Development to Revenue | 16.97% | 17.84% | 18.98% |
Amgen’s profitability metrics show strong returns, supported by efficient cost management and substantial R&D investment.
🗣️ Price Development
🏅 Dividend Scoring System
| Category | Score | |
|---|---|---|
| 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.'s consistent dividend strategy, coupled with its robust performance and proactive financial management, makes it an appealing choice for dividend-conscious investors. Despite moderate leverage, its stable cash flow supports a favorable dividend outlook.