Amgen Inc (AMGN.O), a biotechnology company whose fastest-growing days may be history, may be leaning toward paying its first dividend as investors clamor for distribution of its massive cash holdings. The California biotech held more than $17 billion in cash and marketable securities at the end of last year.
Recent surveys by ISI Group and Sanford Bernstein suggest that Amgen should pay out as much as $1.25 billion a year to investors, many of whom are concerned that the company might deploy its cash in an ill-advised acquisition. That would represent a yield of 2.5 percent, compared with yields of between 4 percent and 5 percent for traditional drugmakers like Pfizer Inc (PFE.N) and Eli Lilly (LLY.N). "The biggest issue investors have is their use of capital," Sanford Bernstein analyst Geoffrey Porges said of Amgen. "Share buybacks don't appear to have created much value."
Source: Reuters
Related Articles:
Dividend Growth Stocks News
- 11 Dogs of the Dow Dividend Stocks to Buy Now - Insider Monkey - 7/27/2025
- 2 Dividend Stocks to Hold for the Next 10 Years - Yahoo Finance - 7/24/2025
- 2 Reliable Dividend Stocks With Yields Above 5% to Buy Now and Hold Forever - Yahoo Finance - 7/26/2025
- The Smartest Real Estate Dividend Stocks to Buy With $2,000 Right Now - Mitrade - 7/26/2025
- European Dividend Stocks To Consider In July 2025 - Yahoo Finance - 7/24/2025
- Duke Energy (DUK) Dividend Stock Analysis - 7/25/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
- Amgen, Inc. (AMGN) Dividend Stock Analysis - 6/27/2025
- W.W. Grainger, Inc. (GWW) Dividend Stock Analysis - 6/20/2025
Investors clamor for Amgen dividend
Posted by D4L | Friday, March 18, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.