When income investors think of great industries for dividends, biotech's perhaps the last industry on the list. After all, biotech's known for boom-or-bust stocks that can make it big -- or implode -- based on the success or failure of a single or handful of drugs. Stability, strong and steady cash flow, and high-yielding, flexible dividends certainly aren't the hallmarks of this sector.
Yet there's one stock in biotech that's right up an income investor's alley: Amgen (AMGN 0.60%). Amgen has made its mark through top-selling drugs like rheumatoid arthritis treatment Enbrel, a drug that Amgen markets alongside Pfizer (PFE 0.23%), and white blood cell therapies Neupogen and Neulasta. Those drugs make up a significant chunk of Amgen's sales and have eclipsed blockbuster status, but Amgen has more than just a few top drugs supporting its entire financial architecture. The company also boasts a modest but fast-growing dividend with a relatively low dividend payout ratio.
Unlike many of its biotech peers, Amgen's portfolio and pipeline offer diversity and flexibility in the future. In the video below, Fool contributor Dan Carroll discusses what's ahead for Amgen and just how this stock's poised to thrive in the long run for income investors.
