2 No-Brainer Dividend Stocks With Yields Over 3% to Buy in 2025 and Hold for a Decade or Longer

Amgen’s stock price is down, but its dividend has risen by 40.6% over the past five years. The stock offers a 3.3% dividend yield, and another payout bump announcement is likely around the corner. Last December, the company announced its 12th consecutive annual dividend payout raise.

Amgen’s stock price has been beaten down because its attempts to develop an anti-obesity drug haven’t succeeded in the eyes of investors. The stock is a buy on the dip because its overlooked product portfolio has plenty of growth drivers to push its bottom line, and dividend payout, higher.

For example, sales of an asthma drug Amgen markets in partnership with AstraZeneca, called Tezspire, are soaring now and could get another big boost. Recent clinical trial results show it significantly reduced the size of patients’ nasal polyps and reduced congestion.

Third-quarter Tezspire sales rocketed 67% higher year over year to an annualized $1.1 billion. An eventual approval to treat chronic nasal polyps could push sales of the blockbuster much higher.

In 2023, Amgen acquired a handful of rare-disease drugs from Horizon Therapeutics. One of them, Tepezza, is the only FDA-approved treatment for thyroid eye disease. Krystexxa is the only FDA-approved treatment for chronic gout, and Uplinza is used to treat a progressive autoimmune disease that affects vision. Combined sales of these three treatments rose to an annualized $3.6 billion in the third quarter.

With a lack of competition for the patient populations Horizon’s drugs address, Amgen could keep raising its dividend at a rapid pace for another 12 years. Adding some shares to a diversified portfolio now and holding them over the long run looks like a smart move.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $369,349!*

• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,990!*

• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $504,097!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 2, 2024

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool recommends Amgen and AstraZeneca Plc. The Motley Fool has a disclosure policy.

2 No-Brainer Dividend Stocks With Yields Over 3% to Buy in 2025 and Hold for a Decade or Longer was originally published by The Motley Fool