Biotechnology medicines company, Amgen, Inc.(AMGN) reported on Friday a plan to increase dividend payouts, and issue share buy backs in early 2013.
The company reported a plan to increase dividend payments by 31% to 47 cents per share during the first quarter of 2013. AMGN, which is the only biotechnology company to pay a dividend, currently pays a quarterly dividend of 36 cents per share. Analysts expected the company to raise dividends to 40 cents per share.
In addition to a dividend increase, the company announced a plan to buy back $2 billion in shares during the first quarter of 2013. This buy back program is expected to continue to become a $10 billion program.
Seeking new acquisitions to increase revenues, the company reported a plan to purchase DeCode Genetics Inc. which was approved for $415 million. Additionally, AMGN acquired Micromet Inc.(MITI) for $1.16 billion earlier this year.
Amgen shares were mostly flat during premarket trading Friday. The stock is up 38% YTD.
The Bottom Line
Shares of Amgen (AMGN) will now have a 2.11% dividend yield, based on the higher dividend payout and last night’s closing stock price of $89.15. The stock has technical support in the $82-$85 price area. The shares are trading near all-time highs.
Amgen, Inc.(AMGN) is not recommended at this time, holding a Dividend.com DARS™ Rating of
3.4 out of 5 stars.