Dividend-Paying Biotech Looks Like a Steal

by Sam Collins | July 1, 2013 7:31 am

Amgen (AMGN[1]) — This biotech company has been a leader in the development of genetically based research and treatment for cancer, anemia, rheumatoid arthritis and a host of other major illnesses. It markets five of the world’s best-selling biotech drugs.

Since the Trade of the Day[2] last mentioned the stock on March 22, S&P has increased Amgen’s earnings estimates $0.03 to $7.24 for 2013 and $0.14 cents to $8.14 for 2014.

At that time, a buy at under $95 was suggested with a trading target of $115. The stock reached a high of $114.95 on April 23. AMGN then pulled back under $96, where on June 21, our proprietary internal indicator, the Collins-Bollinger Reversal (CBR), flashed a buy signal.

Buy AMGN at the market for a trade to $115. This stock also is qualified for long-term investors who may benefit from both price appreciation and a dividend. The dividend was started in 2011, and the company now pays $1.88 annually for a 1.9% yield. AMGN is one of the only major biotechnology stocks that pays a dividend.

AMGN Chart
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Chart Key[3]

  1. AMGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMGN
  2. Trade of the Day: https://investorplace.com/2013/03/trade-of-the-day-amgen-nasdaq-amgn-7/
  3. [Image]: https://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: https://investorplace.com/2013/07/trade-of-the-day-amgen-amgn/
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