Amgen Bumps up Quarterly Dividend by 10%

Amgen (AMGN) has raised its quarterly cash dividend by 10% to $1.94 per share on its common stock. Markedly, this is the 11th dividend increase since 2011.

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Amgen announced that the new dividend will be paid on March 8 to shareholders of record as of February 15, 2022.

The company’s annual dividend of $7.76 per share now reflects a dividend yield of 3.8%. (See Amgen stock charts on TipRanks)

Last month, Amgen released its third-quarter 2021 results. The company reported adjusted earnings of $4.67 per share, topping the consensus estimate of $4.26 per share. Total revenues in the quarter amounted to $6.71 billion against the consensus estimate of $6.69 billion. For 2021, the company projects total revenues of between $25.8 billion and $26.2 billion versus the consensus estimate of $26 billion. Meanwhile, non-GAAP earnings guidance of $16.50 to $17.10 per share remains ahead of the Street’s expectations of $16.43 per share.

Wall Street’s Take

Recently, Mizuho Securities analyst Salim Syed reiterated a Hold rating on the stock and decreased the price target to $194 (4.17% downside potential) from $222.

Syed said, “As we approach 2022, we believe there are several headwinds which are not being fully incorporated into consensus, and therefore we sit around $1 billion lower vs 2022 consensus revenues of $27.0 billion.”

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Overall, the stock has a Hold consensus rating based on 3 Buys, 9 Holds, and 1 Sell. The average Amgen price target of $227.42 implies 12.34% upside potential to current levels. Shares have fallen 10.6% over the past year.

Risk Analysis

According to the new TipRanks Risk Factors tool, Amgen stock is at risk mainly from three factors: Ability to Sell, Legal and Regulatory, and Macro & Political, which contribute 28%, 21%, and 17%, respectively, to the total 29 risks identified for the stock.