Dividend investors are always on the lookout for companies that can provide consistent and growing payouts over the long term. Two such companies that stand out in this regard are Amgen and AbbVie. Let’s take a closer look at what makes these companies attractive options for income-seeking investors.
### Amgen: A Biotech Powerhouse
Amgen, a biotech giant, has been steadily increasing its dividend payouts since 2011, with an impressive 750% growth in that period. This track record is backed by a strong underlying business that includes a diverse portfolio of medicines such as Repatha, Tezspire, and Teppezza. In 2024, Amgen reported a 19% year-over-year increase in revenue to $33.4 billion, driven by both organic growth and strategic acquisitions.
While Amgen has faced challenges, such as the setback with its weight loss treatment MariTide, the company has shown resilience and the ability to bounce back. With a robust pipeline of new drugs and potential label expansions for existing products, Amgen is well-positioned to maintain its dividend program. The company offers a forward yield of around 3%, significantly higher than the S&P 500 average.
### AbbVie: A Dividend King
AbbVie, a spin-off from Abbott Laboratories, has a remarkable track record of increasing dividends for 52 consecutive years, earning it the title of a Dividend King. Despite the loss of patent exclusivity for its blockbuster drug Humira, AbbVie has continued to deliver strong financial results thanks to products like Skyrizi, Rinvoq, Botox, Venclexta, and Qulipta.
AbbVie’s ability to navigate the challenges of patent cliffs and develop new blockbuster drugs sets it apart as a reliable dividend payer. With a forward yield of 3.1% and a cash payout ratio of about 62%, AbbVie offers income-seeking investors a stable and growing source of dividends. The company’s focus on innovation and market-leading products makes it a solid choice for long-term dividend investors.
In conclusion, both Amgen and AbbVie have demonstrated their ability to maintain consistent and growing dividends over the years. With strong underlying businesses, diverse product portfolios, and a commitment to innovation, these companies are well-positioned to continue rewarding investors with regular payouts. For dividend investors looking for reliable income streams, Amgen and AbbVie are solid choices worth considering.
