7 Cheap Quarterly Dividend Stocks to Invest in

3. Amgen Inc. (NASDAQ:AMGN)

Forward P/E Ratio: 13.53

Amgen Inc. (NASDAQ:AMGN) is an American multinational biopharmaceutical company, headquartered in California. According to analysts, the company’s business is strong, supported by a solid portfolio of leading drugs for conditions like heart disease, osteoporosis, asthma, and rare diseases. The company’s new drug candidate, MariTide, aimed at obesity, also shows considerable promise. However, the most significant growth potential for AMGN lies in its innovative oncology portfolio, especially its BITE platform, which is expected to lead to several new treatments in the coming years. Notably, drugs like Imdeltra, targeting small cell lung cancer, and Fortitude, focused on gastric cancer, are expected to hit the market in 2025/2026, presenting significant growth opportunities.

Despite these developments, Amgen Inc. (NASDAQ:AMGN)’s stock is currently undervalued, mainly because the market is heavily focused on MariTide, leading to considerable volatility in its stock price. The stock has a forward P/E multiple of 13.53x, which makes it one of the best cheap quarterly dividend stocks.

In addition to its product pipeline, Amgen Inc. (NASDAQ:AMGN) delivered strong financial results, with revenue rising 23% year-over-year to $8.5 billion in the third quarter, partly due to an acquisition. Excluding this, its organic sales still grew by a solid 8% year-over-year. The company experienced double-digit sales growth across ten of its products, including $1.2 billion from rare disease treatments, boosted by several promising early-stage medications. The company also reported $3.3 billion in free cash flow for the quarter, up from $2.5 billion in Q3 2023. This increase was primarily driven by strong business performance and favorable timing in working capital, although it was somewhat offset by lower interest income.

Amgen Inc. (NASDAQ:AMGN) is a solid dividend payer as the company has raised its payouts for 13 years in a row. The company offers a quarterly dividend of $2.38 per share and has a dividend yield of 3.34%, as of January 30.

Amgen Inc. (NASDAQ:AMGN) was included in 68 hedge fund portfolios at the end of Q3 2024, compared with 69 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these funds are worth over $1.7 billion. Among these hedge funds, Two Sigma Advisors was the company’s leading stakeholder in Q3.