1 dividend growth stock to buy and hold for 10 years

If there’s one thing income investors like more than regular dividend payments, it’s consistency. And increasing dividend distributions. Of course, not all companies can offer this. Some will eventually suspend their dividend programs or, at the very least, reduce their payouts.

Fortunately, there are stocks on the market that appear committed to returning capital to shareholders through regular dividend increases. That’s what income-seeking investors are looking for. Here’s an example of a great dividend-growing stock worth holding onto over the next decade: Amgen (NASDAQ:AMGN).

Amgen Dividend Record

Amgen is one of the largest biotechnology companies in the world. It has a wide range of drugs, nine of which generated at least $1 billion in sales last year. Selling life-saving drugs is not a business that is likely to go out of fashion anytime soon. Amgen’s success in this area has been the main driver of its long-term performance and steady dividend increases. It is true that the past is no guarantee of future success.

Still, it’s worth pointing out that Amgen has an excellent dividend history, which speaks to an underlying culture within the company that can lend itself to future success. Over the past 10 years, Amgen has increased its dividends by 269%. The drugmaker’s forward yield of 2.83% is much higher than the forward yield of 2.83%. S&P500Amgen’s average dividend yield is 1.35%. Amgen’s cash dividend yield is about 65%. That seems a bit high, but not prohibitive. Its last dividend increase was recently in the first quarter.

Amgen has clearly shown its commitment to increasing its dividend, but can the company’s financial performance support its dividend program going forward?

Why the future is bright

The path forward is clear for Amgen. The company must develop innovative new drugs that can drive revenue and profit growth.

One area biotech is working on is weight loss therapies, arguably the hottest area in the industry today. Drugmakers are investing millions in developing anti-obesity drugs. For what ? Thanks to significant and relatively recent advances, sales of weight-loss drugs are expected to skyrocket by the end of the decade.

Although Amgen currently lags behind leaders in this area, it is making steady progress. The biotech’s phase 2 asset, MariTide, appears relatively promising. Recent Phase 1 Data showed that MariTide helped reduce patients’ body weight and maintain it for up to 150 days after treatment ended – a key benefit.

The story continues

It’s way too early to call MariTide the next big thing in weight loss treatment, especially considering the cutthroat competition. However, Amgen does exactly what is expected of it. The company has other assets under development in the weight loss space. It also has a large pipeline beyond this field, with a few dozen candidates in total.

Quantity matters in the biotech industry. Many Phase 1 programs never make it to market, so it’s…