Amgen (AMGN -1.01%) is the world's largest biotechnology company by revenue, focusing on using living cells to create a robust product portfolio of biologic medicines to treat serious diseases in several areas -- among them, cardiovascular, oncology, and neuroscience. In 2022, the company's stock has returned over 9% year to date, outperforming the S&P 500's loss of 20%.

A strong first half of the year amid a bear market is a great reason for investors to be interested in the company's stock. But what might truly excite investors is what could be ahead for Amgen in 2023 and beyond.

Dividend increases can provide years of passive income

For starters, Amgen has proven a steady dividend payer. While it's still early days, the biotech is steadily moving toward Dividend Aristocrat status, boasting 11 consecutive years of increasing annual dividends. The current annual payout is $7.76 per share, providing a dividend yield of 3.25% --  and based on the company's growth strategy, investors should see increases to the dividend. 

In fact, Amgen's pattern for the past four years has been to increase its dividend by 10% a year. In February, the company outlined its growth strategy, which includes paying out an average of 60% of non-GAAP (adjusted) income to investors through 2030. To do that, it's aiming for mid-single-digit compound annual revenue growth and high-single-digit to low-double-digit income growth. 

The company's consistent growth goes beyond its dividends. Over the past 11 years, the company's stock has provided investors with an average annual gain of 15%, with only one-year period in which the stock price went down -- June 2020 to June 2021. Of course, that was when COVID-19 brought on one of the toughest challenges that healthcare companies have ever faced. Between the share price gain and reinvested dividends, a $10,000 investment over the past 10 years would be worth over $30,000 today.

Amgen is ready to grab its share of a $20 billion market

Revenue and dividend growth could improve still further for Amgen in 2023 and beyond. Biosimilar drugs that offer cost-effective alternatives to original top-brand treatments are increasing in use. This market is expected to grow at a massive 40% annualized rate over the next seven years -- from $9.5 billion in 2022 to over $100 billion by 2029.

One of the top drugs up for patent expiration in 2023 is AbbVie's Humira. Under a settlement reached in 2017 between AbbVie and Amgen, Amgen has had to sit on its already FDA-approved potential biosimilar blockbuster, Amjevita, for the U.S. market. But come Jan. 31, the doors will open to Amgen, which should help the company grab a portion of the $20 billion in peak annual sales that AbbVie has enjoyed from Humira.

U.S. competition for Amgen won't be light. AbbVie reached settlements with a total of eight companies with biosimilars that are seeking to grab a share of the Humira sales. But with Amjevita already FDA-approved and available in many countries, it should have a leg up on competition right out of the gate. Amjevita produced sales of $439 billion outside the U.S. in 2021. That number is expected to get a boost of $1 billion by the end of 2023 as a result of the U.S. market opportunity.

Amgen is also acting on a plan that doesn't rely on just one major biosimilar entry. The company's product pipeline includes three biosimilars in late-stage clinical trials being developed to compete with leading drugs in the areas of psoriasis, rare blood diseases, and macular degeneration. Amgen expects to receive updated trial data later this year, with expectations to double its biosimilar revenue from 2021 to 2030, taking it from over $2 billion to over $4 billion annually.

Investors looking to ride out the remainder of the bear market while preparing for a recovery should look to Amgen to boost their portfolio potential. Increasing dividends, a robust pipeline, and a solid growth strategy should be enough to keep the share price moving in the right direction.