It is Wednesday night, but I am very happy because tomorrow is a national holiday here in Japan.
Yesterday, I initiated a position in Amgen Inc (AMGN) with 20 shares @$141 per share with $6.95 commission. The Yields-On-Cost is 2.87% adding $80.00 to my annual gross dividend income.
Amgen, Inc. is a biotechnology medicines company, which discovers, develops, manufactures and markets medicines for grievous illnesses. It focuses on human therapeutics and concentrates on innovating novel medicines based on advances in cellular and molecular biology. It markets recombinant protein therapeutics in supportive cancer care, nephrology and inflammation. Its products include Neulasta, a pegylated protein, based on the Filgrastim molecule and NEUPOGEN, a recombinant-methionyl human granulocyte colony stimulating factor both of which selectively stimulate the production of neutrophils; Enbrel, an inhibitor of tumor necrosis factor, a substance that plays a role in the body’s response to inflammatory diseases; Sensipar/Mimpara, a small molecule calcimimetic that lowers serum calcium levels; Vectibix, a monoclonal antibody that binds specifically to the epidermal growth factor receptor; and Nplate, a thrombopoietin receptor agonist that mimics endogenous TPO, the primary driver of platelet production. The company was founded by William K. Bowes, Jr., Franklin Pitcher Johnson, Jr., George B. Rathmann and Joseph Rubinfeld on April 8, 1980 and is headquartered in Thousand Oaks, CA.
Amgen pays $4.00 in annual dividends. The company started paying dividends in 2011 and right out of gate have started raising them. Amgen is a Dividend Challenger, having raised dividends for 6 consecutive years and its 5-yr dividend growth rate (DGR) stands at 29%. The last dividend increase announcement came in Dec 2015 when it raised the dividend by 27%. The payout ratio = 37%.
The entry price of $141.00 is almost 52 weeks low which is $139.02. I speclate the company will make another double digit increase of its quarterly dividend in December so that my YOC will exceed 3%. I thought it was a bargain now to buy this quality company’s shares.
Disclosure: Long AMGN