Why NASDAQ:AMGN is a Top Pick for Dividend Investors.

Consider AMGEN INC (NASDAQ:AMGN) as a top pick for dividend investors, identified by our stock screening tool. NASDAQ:AMGN shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Analyzing Dividend Metrics

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:AMGN was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 13.76, AMGN pays a better dividend. On top of this AMGN pays more dividend than 98.48% of the companies listed in the same industry.
• AMGN's Dividend Yield is a higher than the S&P500 average which is at 2.45.
• The dividend of AMGN is nicely growing with an annual growth rate of 10.76%!
• AMGN has paid a dividend for at least 10 years, which is a reliable track record.
• AMGN has not decreased their dividend for at least 10 years, which is a reliable track record.

Unpacking NASDAQ:AMGN's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:AMGN has earned a 5 out of 10:

• AMGN has a Altman-Z score of 1.83. This is in the better half of the industry: AMGN outperforms 64.81% of its industry peers.
• The Debt to FCF ratio of AMGN (6.45) is better than 94.59% of its industry peers.
• AMGN has a Current Ratio of 2.86. This indicates that AMGN is financially healthy and has no problem in meeting its short term obligations.
• AMGN has a Quick Ratio of 2.56. This indicates that AMGN is financially healthy and has no problem in meeting its short term obligations.

How do we evaluate the Profitability for NASDAQ:AMGN?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:AMGN, the assigned 8 is a significant indicator of profitability:

• The Return On Assets of AMGN (8.36%) is better than 97.12% of its industry peers.
• Looking at the Return On Equity, with a value of 98.82%, AMGN belongs to the top of the industry, outperforming 99.66% of the companies in the same industry.
• AMGN's Return On Invested Capital of 10.97% is amongst the best of the industry. AMGN outperforms 96.62% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for AMGN is above the industry average of 13.22%.
• The 3 year average ROIC (16.82%) for AMGN is well above the current ROIC(10.97%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 28.20%, AMGN belongs to the top of the industry, outperforming 98.14% of the companies in the same industry.
• AMGN's Profit Margin has improved in the last couple of years.
• AMGN's Operating Margin of 33.95% is amongst the best of the industry. AMGN outperforms 98.14% of its industry peers.
• AMGN has a better Gross Margin (73.74%) than 83.76% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Our latest full fundamental report of AMGN contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.