Biotech giant Amgen (AMGN) announced after Wednesday’s closing bell that it has boosted its dividend by 30%. Here’s what the news means for mutual fund investors.
Inside AMGN’s Dividend Boost
Amgen has boosted its quarterly dividend from 61 cents to 79 cents, or $3.16 annually. The next dividend will be paid on March 6 to shareholders of record on February 12. The stock will be going ex-dividend on February 10. The new payout is a 30% increase from the stock’s previous dividend.
Healthy Dividend for income-Focused Investors
Biotech has had a great year in 2014, and this run has not excluded Amgen. The stock is a main play in the industry and is up nearly 50% this year. For dividend investors, this most recent boost is a very healthy increase and is ideal for a dividend growth investor. Investors should be aware that a stock like Amgen is much more volatile than larger pharmaceutical names. In 2013, the stock also boosted its dividend by 30%.
Mutual Funds to Watch
Investors seeking exposure to AMGN may consider one the funds below as an alternative to investing directly in the stock. These funds currently have the largest stakes in the company.