Does Amgen’s (AMGN) Steady Dividend Signal Strength in Its Evolving Pipeline Strategy?

• Amgen's Board of Directors declared a US$2.38 per share dividend for the third quarter of 2025, with payment set for September 12 to shareholders recorded at the close of August 22; this announcement was made earlier this month.
• This consistent dividend payout highlights Amgen's focus on returning value to shareholders, even as the company advances significant developments in its therapeutic pipeline.
• To assess the impact of Amgen's sustained dividend and pipeline progress, we'll explore how these developments influence its broader investment narrative.

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Amgen Investment Narrative Recap

To be comfortable as an Amgen shareholder, you need to believe in the company's ability to advance its innovation-focused pipeline and deliver on emerging therapies, while navigating industry competition and regulatory uncertainty. The newly announced US$2.38 per share dividend for Q3 2025 is a signal of financial stability, but it is not expected to materially alter the key near-term catalyst, progress in obesity and rare disease treatments, or the primary risk, which remains variable uptake and competition in those segments.

Of recent announcements, the June 30th update on Amgen's gastric cancer drug, bemarituzumab, stands out. The positive Phase 3 survival data could support pipeline momentum, a crucial catalyst, as investors weigh the timing and extent of new product contributions against ongoing competitive pressures in established core areas like cholesterol and rare disease therapeutics.

Yet, investors should also remember that, in contrast, one overlooked challenge is the risk of new oral competitors entering the incretin market for obesity therapies, which could...

Read the full narrative on Amgen (it's free!)

Amgen's outlook suggests $37.0 billion in revenue and $8.9 billion in earnings by 2028. This is based on a 2.7% annual revenue growth rate and a $3.0 billion increase in earnings from $5.9 billion today.

Uncover how Amgen's forecasts yield a $313.48 fair value, a 6% upside to its current price.

Exploring Other Perspectives

Compared to consensus, the highest analyst forecasts point to rapid pipeline progress and robust 7.3 percent annual revenue growth, aiming for US$42.2 billion by 2028. This optimism stands in contrast to worries over expiring patents and pricing power. Opinions about Amgen span a wide spectrum, consider how fresh news like the recent dividend might prompt some to revisit even these upbeat expectations.

Explore 5 other fair value estimates on Amgen - why the stock might be worth over 2x more than the current price!

Build Your Own Amgen Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Amgen research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Amgen research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Amgen's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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