Amgen vs. Gilead Sciences: Which Biotech Dividend Stock Is the Better Buy?
2026-10-25 08:26
•Keith Speights •The Motley Fool
••••• •• Axe Cap view
Amgen vs. Gilead: Biotech Dividends with Different Flavours
Two strong biotech dividend stocks show distinct profiles—yield-focused Amgen and value-minded Gilead.
South African investors looking beyond our borders often seek dividend-paying stocks for stable income. Amgen offers a more attractive 2.2% yield and has a broader drug portfolio showing 9% sales growth year-on-year. This suggests a healthier growth runway, which could translate into higher future payouts. Gilead, meanwhile, sports a lower payout ratio, meaning it keeps more earnings to reinvest or buffer downturns. At a forward P/E of 15.6, Gilead looks cheaper relative to earnings, appealing to those prioritizing safety. Neither stock trades here directly, but rand-hedged exposure via USD/ZAR is plausible given the US dollar’s continued influence on SA markets. Watch for biotech sector risks like regulatory approvals and patent cliffs, which could disrupt cash flows. If the dollar weakens sharply, it may pressure returns for rand-based holders. this is just our opinion and not financial advice
Buy Amgen for a blend of yield and growth; trim Gilead if already held and rotate toward higher growth opportunities locally. For rand-sensitive investors, consider currency hedging due to USD/ZAR volatility.
- AMGN
- GILD
- USD/ZAR
- US biotech regulatory setbacks
- USD/ZAR volatility impacting rand returns
6/10
Amgen and Gilead Sciences are compared as dividend-paying biotech stocks. Amgen offers a higher yield (2.2%) and stronger product sales growth, while Gilead has a lower payout ratio (43.5% vs 60.9%) and better valuation metrics. The choice depends on investor priorities: Amgen suits yield-focused investors, while Gilead appeals to those prioritizing safety and value. Both stocks offer higher yields than the S&P 500.
Our take is based on reporting first published by The Motley Fool.
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