Drug stocks have had their share of headwinds over the last 12 months. Politicians have taken aim at drug firms due to rising drug prices.
The drug firms counter that the high prices are needed to fund the development of new drugs. After a pretty lousy 2016, some drug makers have come back nicely in 2017.
One of my favorites in the group is Amgen (AMGN). The stock has done well this year and looks poised to post additional gains. Boosting total-return potential is the stock’s dividend yield of 2.5%.
While biotech stocks will remain volatile – the prospects for more robust price regulation in the drug sector continually hang over the group – I like these shares and look for them to outperform the broad market this year.
Please note Amgen offers a traditional dividend reinvestment plan that requires ownership of at least one share— and the share must be registered in the name of the investor -– in order to join the company’s DRIP.