Amgen Inc. (NASDAQ:AMGN) shares traded flat on Friday regardless of declaring a $1.76 Q3 dividend per share. The corporate pays the dividend on eighth September to shareholders of document on seventeenth August. As well as, Amgen reviews its fiscal Q2 outcomes on third August, and after lacking analyst expectations on Q1 earnings, the inventory worth could possibly be thrilling going into August.
Based mostly on the corporate’s closing worth of $241.54 on Friday, it’s now paying dividends at a ahead yield of two.91%. Analysts count on Amgen’s annual dividend per share to develop to $7.50 subsequent 12 months, up from $6.93 this 12 months, earlier than hitting $8.25 within the fiscal 12 months 2023.
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Amgen shares commerce at a horny P/E ratio of 20.08. As well as, its ahead P/E ratio of simply 13.46 might be compelling to worth traders. Nonetheless, analysts count on AMGN’s earnings to say no by 4.40% this 12 months earlier than growing by 9.82% subsequent 12 months. Due to this fact, there could possibly be some bottlenecks within the quick time period.
Nonetheless, traders can sit up for the beneficiant compensation the corporate affords by means of dividend funds. Based mostly on subsequent 12 months’s forecast annual dividend per share, Amgen may commerce a yield of three.09%, making it compelling to dividend traders.
Technical overview: why Amgen shares may bounce again forward of Q2 outcomes
Amgen inventory is down 2.49% this week and almost 15% off its yearly highs of $276.69, reached on the finish of January. Nonetheless, this week’s decline has pushed AMGN shares to the trendline assist, creating a possibility for a rebound.
Moreover, given the dividend announcement and the upcoming earnings report, traders might be assessing methods to put money into the Thousand Oaks, CA-based biopharmaceuticals firm.
Buyers can goal rebound income at roughly $246.19 or increased at $250.11, whereas $237.16 and $233.62 are essential assist ranges.
Backside line: the case for purchasing AMGN inventory worth rebound
In abstract, though Amgen earnings may decline this 12 months earlier than rising subsequent 12 months, the inventory appears attractively valued. Moreover, the current pullback appears to be discovering assist off the trendline, creating a possibility for a rebound. Due to this fact, the third August earnings report could possibly be the catalyst.
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