3. Amgen Inc. (NASDAQ:AMGN)
Dividend Yield as of December 17: 3.56%
An American multinational biopharmaceutical company, Amgen Inc. (NASDAQ:AMGN) ranks third on our list of the best Dogs of the Dow dividend stocks. The company is distinguished by its undervaluation and strong pipeline, especially its experimental obesity drug, MariTide. In its latest earnings report, it highlighted that a Phase 2 study of MariTide is underway in adults with overweight or obesity, with or without Type 2 diabetes mellitus and topline data are expected in late 2024. Plans for a broad Phase 3 program across multiple indications are progressing as scheduled. In addition, a Phase 2 study of MariTide has been initiated to explore its potential for treating Type 2 diabetes in both obese and non-obese patients.
This aspect of the company was also highlighted by PGIM Jennison Health Sciences Fund in its Q2 2024 investor letter. Here is what the firm has to say:
“Amgen Inc. (NASDAQ:AMGN) is a large cap global biotech company with a diverse portfolio of marketed and pipeline products. Amgen’s discovery pipeline had led the company to broaden its focus from oncology, immunology, and renal disease to include musculoskeletal, cardiovascular, and neurologic conditions. In addition, Amgen has turned its expertise in antibody manufacturing into a leading position in the development of biosimilars of competitor drugs. Most recently, Amgen shares advanced in 2Q following its announcement that its novel injectable GLP-1 agonist / GIPR antagonist, MariTide, for obesity showed promising interim Phase 2 data and has shown enough promise to warrant advancement into pivotal trials as soon as late 2024. While Eli Lilly and Novo Nordisk will remain the market leaders in the diabetes / obesity space, we think there is room for Amgen to carve out a meaningful share of the market with its antibody-peptide conjugate approach that could enable monthly or better dosing for MariTide.”
In the third quarter of 2024, Amgen Inc. (NASDAQ:AMGN) reported revenue of $8.5 billion, which showed a 23.1% growth from the same period last year. The company saw double-digit sales growth from ten products. This included $1.2 billion in sales from its rare disease products, driven by several first-in-class, early-stage medicines. The company generated $3.3 billion in free cash flow during the third quarter of 2024, compared to $2.5 billion in the same period in 2023. The increase was fueled by strong business performance and the timing of working capital items, although it was partially offset by lower interest income.
On December 10, Amgen Inc. (NASDAQ:AMGN) declared a 5.8% hike in its quarterly dividend to $2.38 per share. This was the company’s 13th consecutive year of dividend growth. It returned $1.2 billion to shareholders through dividends in the most recent quarter. The stock’s dividend yield on December 17 came in at 3.56%.
Amgen Inc. (NASDAQ:AMGN) was included in 68 hedge fund portfolios at the end of Q3 2024, compared with 69 in the previous quarter, according to Insider Monkey’s database. The stakes held by these funds have a collective value of over $1.7 billion.
