Beat the Nasdaq With This Cash-Gushing Dividend Stock

Dan Victor, The Motley Fool

Thu, May 1, 2025, 7:30 AM 5 min read

• Shares of Amgen have rallied at the start of 2025 despite the broader stock market sell-off.

• Amgen benefits from its portfolio of best-in-class therapeutics, alongside an extensive pipeline.

• The stock's 3.3% dividend yield looks compelling, backed by strong earnings and growth potential.

Reliable dividend income from high-quality companies is a great option for investors seeking to ride out stock market turbulence. Biotech giant Amgen (NASDAQ: AMGN) exemplifies this strategy with its 3.3% dividend yield, supported by steady growth and rock-solid fundamentals. Compared to an 8% decline in the Nasdaq Composite index year to date, Amgen stock has outperformed, up 9% thus far in 2025.

Let's explore why this cash-generating healthcare leader is well-positioned to continue beating the Nasdaq.

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The biopharmaceutical industry is one of the most vital sectors in the economy, developing groundbreaking medicines that can be life-changing for patients fighting serious diseases. Amgen stands out with a highly diversified portfolio of over 40 therapeutics across four key areas -- General Medicine, Rare Disease, Inflammation, and Oncology. Notably, 14 of its products have achieved blockbuster status, generating over $1 billion in annualized sales with best-in-class profiles.

In 2024, Amgen delivered strong results, with full-year revenue reaching $33.4 billion. That's a 19% year-over-year increase, or 7% growth excluding the effect of the 2023 Horizon Therapeutics acquisition. The company had 21 products achieve record sales, with 10 posting double-digit revenue growth. Key products gaining traction include Blincyto, a revolutionary blood cancer treatment for B-cell acute lymphoblastic leukemia, and Evenity, a best-in-class osteoporosis treatment. Several early stage rare-disease products also contributed to sales momentum.

Amgen's 2024 earnings per share (EPS) rose to $19.84 from $18.65 in 2023, while free cash flow surged 41% to $10.4 billion, reflecting the company's robust business performance. Looking ahead to 2025, Amgen expects continued positive earnings growth, driven in part by several clinical pipeline programs nearing regulatory submission, providing a promising outlook for the company.

One of Amgen's most promising therapeutic candidates is MariTide, a novel weight-loss and obesity treatment currently initiating a phase 3 study.