April 21, 2026 a 12:46 pm

AMGN: Dividend Analysis - Amgen Inc.

📊 Overview

Amgen operates within the biotechnology sector and displays a consistent dividend history over the past 16 years. With a dividend yield of 2.12% and no recent instances of cuts or suspensions, Amgen's dividend per share currently stands at $9.52 USD.

Parameter	Details
Sector	Biotechnology
Dividend yield	2.12 %
Current dividend per share	9.52 USD
Dividend history	16 years
Last cut or suspension	None

🗣️ Dividend History

Amgen's dividend history is vital in reflecting its commitment to returning value to shareholders. The consistent dividend payments underscore the company's reliable cash flow and earnings capacity. This track record is particularly important for income-focused investors. Below is a summary of the last five dividend payments:

Year	Dividend per Share
2026	5.04 USD
2025	9.52 USD
2024	9.00 USD
2023	8.52 USD
2022	7.76 USD

📈 Dividend Growth

Dividend growth is a measure of how much a dividend has increased over a specified period, reflecting the company's growing financial health. Amgen has managed an average dividend growth of 8.27% over the past five years, indicating a moderate yet steady increase.

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 metric to assess the sustainability of a company's dividend. It compares the dividends paid out to shareholders relative to the company's net income. Amgen's EPS-based payout ratio is 66.57%, while the free cash flow-based payout is 63.38%. Both figures suggest a healthy but closely monitored payout strategy to ensure dividend sustainability without compromising growth potential.

Key figure	Ratio
EPS-based	66.57 %
Free cash flow-based	63.38 %

With an EPS payout ratio of 66.57%, Amgen is allocating a substantial portion of its earnings to dividends. This level is balanced and indicates that the company is able to maintain its dividend payments while still investing in business growth.

✅ Cashflow & Capital Efficiency

Understanding Amgen’s cash flow generation and capital efficiency is imperative to assessing its ability to sustain and grow dividend payouts. The metrics point towards how effectively the company manages its capital and generates free cash, which in turn supports its dividend policy.

Year	2025	2024	2023
Free Cash Flow Yield	4.60 %	7.37 %	4.78 %
Earnings Yield	4.38 %	2.90 %	4.36 %
CAPEX to Operating Cash Flow	18.66 %	9.54 %	13.13 %
Stock-based Compensation to Revenue	0 %	1.59 %	1.53 %
Free Cash Flow / Operating Cash Flow Ratio	81.34 %	90.46 %	86.87 %

The data highlights Amgen's effective capital management, with a focus on maintaining healthy cash flow ratios. This enables consistent dividend payouts alongside investments in the business for growth.

⚠️ Balance Sheet & Leverage Analysis

Analyzing Amgen’s balance sheet provides insights into its financial health, indicating how well the company can manage its debts and sustain financial operations. Observing key metrics such as the debt-to-equity ratio and current ratio illustrates Amgen's financial stability and liquidity position.

Year	2025	2024	2023
Debt-to-Equity	6.31	10.23	10.37
Debt-to-Assets	0.60	0.65	0.67
Debt-to-Capital	0.86	0.91	0.91
Net Debt to EBITDA	2.87	3.60	3.63
Current Ratio	1.14	0	1.65
Quick Ratio	0.90	0.95	1.13
Financial Leverage	10.46	15.63	15.59

Amgen displays a relatively high leverage ratio which indicates that the company has substantial debt; however, it has a reasonable quick ratio that suggests its ability to cover short-term obligations with its most liquid assets.

🔍 Fundamental Strength & Profitability

Evaluating the fundamental strength and profitability of Amgen is essential for understanding its long-term growth potential and operational efficiency. Metrics such as return on equity and profit margins provide insight into how effectively the company generates returns on its investments.

Year	2025	2024	2023
Return on Equity	89.06 %	69.59 %	107.78 %
Return on Assets	8.51 %	4.45 %	6.91 %
Net Profit Margin	20.99 %	12.24 %	23.83 %
EBIT Margin	29.06 %	23.23 %	38.06 %
EBITDA Margin	43.12 %	39.96 %	52.50 %
Gross Margin	70.80 %	61.53 %	70.15 %
R&D to Revenue	19.88 %	17.84 %	16.97 %

Amgen's impressive return on equity, alongside significant profit margins, indicate a strong and profitable business, sustaining its growth trajectory and dividend commitments through operational efficiency.

📉 Price Development

📈 Dividend Scoring System

The following table provides an individual scoring of Amgen's dividend aspects based on key performance indicators across the investment spectrum.

Category	Score	Score Bar
Dividend yield	3/5
Dividend Stability	4/5
Dividend growth	3/5
Payout ratio	3/5
Financial stability	2/5
Dividend continuity	4/5
Cashflow Coverage	3/5
Balance Sheet Quality	3/5

🗣️ Rating

Amgen presents a compelling blend of robust dividend history and growth potential for investors, with slight challenges in financial leverage and cash flow coverage. The total score of 25/40 in the dividend scoring system suggests a stable dividend play but warrants careful consideration of debt levels and dividend sustainability in light of potential economic shifts.