Amgen (AMGN) is a biotechnology stock that focuses on niche treatments for cancer, kidney and bone disease. The company only started paying a dividend in 2011, but has quickly increased its payouts from 28 cents a quarter to 47 cents currently — 67% in two years.
Also worth noting is that Amgen’s fiscal 2013 earnings are on pace for $7.30 per share — meaning that the $1.88 in annual dividends is a mere 26% of profits, and that the dividend can move much higher even if profits do not.
But profits are moving higher, pacing $7.75 in EPS for fiscal 2014 according to Standard & Poor’s. That means dividends have even more upside in the years ahead to build off of these recent increases.