A Safe Dividend in a Volatile Sector?

Investors can count on this dividend, UNLESS... [Shield] AN OXFORD CLUB PUBLICATION [Wealthy Retirement]( [View in browser]( Editor's Note: Good afternoon! In this week's Safety Net, Chief Income Strategist Marc Lichtenfeld evaluates a large cap biotech that one of our readers, Lucy, requested last week. Thanks for the suggestion, Lucy! I think you'll find that Marc makes a compelling case in today's Safety Net... but he's even more excited about a [different biotech stock](. This company has nearly quadrupled its quarterly dividend payout over the past decade, leading Marc to call it his "top dividend stock for a lifetime of income." [Go here to find out how to get Marc's full report, titled "My #1 Dividend Stock"!]( - James Ogletree, Managing Editor [SAFETY NET]( [Amgen: The Rare Biotech With a Safe Dividend]( [Marc Lichtenfeld, Chief Income Strategist, The Oxford Club]( [Marc Lichtenfeld]( When I first started covering the biotech sector 20 years ago, it was pretty difficult to find companies that paid dividends. Even today, there aren't many of them. When most investors hear "biotech stocks," they think of small, unprofitable companies that often don't even have revenue yet because they don't have any approved products. There are lots of biotech companies like that. They need to invest every dollar they have into developing their medicines, so they aren't able to pay a dividend. But there are also some mature biotech companies that are very profitable and cash flow positive and can afford to pay dividends. Amgen (Nasdaq: AMGN) is one of them. The company pays a $2.25 per share quarterly dividend, which comes out to a 3.3% yield. Biotech can be notoriously volatile, though, so can investors count on receiving the same dividend quarter after quarter? SPONSORED [Yours Free! Top FIVE Dividend Stocks Right Now]( Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... completely free of charge! You'll discover... - An "A"-rated, ultra-safe dividend stock with a huge 8% yield - Three of Marc's favorite "Extreme Dividend" stocks, which could supercharge your income - And finally, Marc's No. 1 dividend stock for a LIFETIME of income. [Click here to get the names and ticker symbols now](... before the download link expires. **NO CREDIT CARD REQUIRED!** Amgen's free cash flow slid from $8.8 billion to $7.4 billion last year. That is something Safety Net does not want to see. Declining free cash flow can be an early sign that a company might struggle to afford its dividend, and Amgen's one-year and three-year free cash flow growth are both negative. Fortunately, free cash flow is forecast to leap to $13.3 billion this year. Even if that prediction is way off, this year's free cash flow will still likely be higher than last year's (and probably 2022's as well). [Chart: ]( [View larger image]( Despite the down year in 2023, Amgen was still easily able to afford its dividend. It paid shareholders $4.6 billion for a 62% payout ratio. SPONSORED [See What One Ticker... One Trade... EVERY WEEK... Can Do for YOU]( [Calendar; January - June]( New research proves that trading one ticker every week has had the ability to produce extraordinary gains... Including a rare 2,614% in under 11 days. See this groundbreaking new discovery for yourself. [SHOW ME ONE TICKER PAYOUTS]( In 2024, it's estimated that the total amount paid in dividends will rise to $4.9 billion. And thanks to the expected jump in free cash flow, the payout ratio should drop to just 37%. Amgen has also raised its dividend every year since it began paying one in 2011, so it has a strong track record of not only paying the dividend, but boosting it year after year. As long as free cash flow does in fact grow this year, dividend investors should have nothing to worry about. But if free cash flow doesn't increase in 2024, investors will need to start watching the stock more carefully. Dividend Safety Rating: B [Dividend Grade Guide]( Good investing, Marc P.S. If you have a stock whose dividend safety you'd like us to analyze, leave the ticker symbol in the comments section below. You can also take a look to see whether we've written about your favorite stock recently. Just click on the word "Search" at the top right part of the [Wealthy Retirement homepage]( type in the company name and hit "Enter." Also, keep in mind that Safety Net can analyze only individual stocks, not exchange-traded funds, mutual funds or closed-end funds. [2024 Private Wealth Seminar at the Wequassett Resort & Golf Club in Harwich, Massachusetts on October 7-8, 2024]( BUILD AND PROTECT YOUR WEALTH [Here are Three Steps You Need to Take to Protect and Grow Your Money When America Is Threatened With Mass Unemployment. 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