Does Amgen, Inc. (AMGN)’s Dividend Have Room to Soar?

Future growth
Up to this point, we’ve looked at Amgen, Inc. (NASDAQ:AMGN)’s dividend in the past, and we’ve also seen how its stock is being perceived by the market today. However, the most important factor to consider when understanding a dividend’s future is where the company’s cash flow is heading. It’s hard to generate more cash without growing sales, so let’s take a look at what industry analysts are expecting for Amgen’s revenue growth relative to peers this year.

But paying a dividend is proof that Amgen, Inc. (NASDAQ:AMGN) isn’t the high-growth biotech it once was, and the company faces numerous challenges within its core markets. The company recently announced a 30% dividend increase, but it probably can’t continue raising its dividend at such high rates without sacrificing investments in other areas.

The article Does Amgen’s Dividend Have Room to Soar? originally appeared on Fool.com and is written by Brenton Flynn.

Brenton Flynn has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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