Oppenheimer Sees 30-35% Dividend Hike at Amgen (AMGN)

Analysts at Oppenheimer see a large dividend increase for Amgen (NASDAQ: AMGN) although they are still not very constructive on the stock.

Oppenheimer's Boris Peaker, Ph.D. anticipates the company announcing a dividend increase of ~30-35% in December.

"There are no consensus numbers for dividend growth which makes it difficult to estimate the market expectation. However, we believe that a large dividend increase for a very large and liquid company may attract more dividend/value investors into the name around year end," he notes. "Our timing estimate is based on last year's dividend increase announcement and this year's anticipated board meeting in December."

Peaker belives that a 30%+ dividend increase will exceed expectations and attract new capital (at least temporary) into the name.

While the dividend increase can provide a short term bump, the analyst is maintaining an Perform rating on AMGN, with an $89 target.

For an analyst ratings summary and ratings history on Amgen click here. For more ratings news on Amgen click here.

Shares of Amgen are down 0.8 percent early Monday to $86.89.

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