Published Mon, 11 Feb 2019 05:17:35 -0500 on Seeking Alpha
It’s relatively rare for high quality, best in breed type dividend growth stocks to go on sale. As a DG investor who pays a lot of attention to value, these are the situations that I find myself sitting around, waiting to take advantage of. So, what if I told you that one of (if not the best) dividend growth stocks of all time has recently been discounted by the market? You’d be excited right? You might even say that sort of opportunity is too good to be true. Well, it’s not. Amgen (AMGN) has sold off roughly 10% during the last month and presents dividend growth investors with a potentially very attractive long-term opportunity.
Some might be surprised to see me calling Amgen one of the best dividend growth stocks of all time. Oftentimes, I think, when DGIs think about healthcare/bio-tech/big pharma names, companies like Johnson and Johnson (JNJ), Abbot Laboratories (ABT), Medtronic (MDT), or even a behemoth like Pfizer (PFE) comes to mind. Names like these might have much longer dividend growth stories than Amgen, but they aren’t nearly as impressive (specifically when looking at the “growth” aspect of dividend growth). Furthermore, when you factor in the capital gains that Amgen has provided alongside its fantastic dividend growth, AMGN's shares become really tough to beat.
But, you don’t have to take my word for it. Let’s take a look at some long-term data.
Over the last 20 years, AMGN's shares have produced a total annualized rate of return of 10.8%.... Read more