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:
Investors clamor for Amgen dividend
Posted by D4L | Friday, March 18, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.