We cover dividend stocks often at 24/7, as they have provided investors with much better income streams than U.S. government and corporate bonds have over the past five years. The usual suspects often are written about as great buy-and-hold ideas, like telecommunications, utilities, consumer staples and real estate investment trusts because the dividends are dependable. However, some of those stocks lack big upside potential and are considered more of a bond proxy to many investors.
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One area that often is ignored by growth and income investors is biotechnology, as the volatility in the segment (especially with companies that have only one or two income-producing therapies or drugs) is sometimes deemed too risky. We found two companies that are industry leaders but their stocks have been absolutely hammered, and both pay dividends of at least 3.5%.
While not suited for conservative income investors, these stocks could have huge total return potential and offer investors with a touch more risk tolerance some very tempting entry points. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Amgen
This biotech giant remains a top stock for investors to buy and a safer way to play the massive potential growth in biosimilars. Amgen Inc. (NASDAQ: AMGN) discovers, develops, manufactures and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology and neuroscience.
The company’s products include the following:
- Enbrel to treat plaque psoriasis, rheumatoid arthritis and psoriatic arthritis
- Neulasta reduces the chance of infection due a low white blood cell count in patients cancer
- Prolia to treat postmenopausal women with osteoporosis
- Xgeva for skeletal-related events prevention
- Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis and oral ulcers associated with Behcet’s disease
- Aranesp to treat a lower-than-normal number of red blood cells and anemia
- Kyprolis to treat patients with relapsed or refractory multiple myeloma
- Repatha, which reduces the risks of myocardial infarction, stroke and coronary revascularization
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