Two Unshakable Dividend Stocks to Buy and Hold for the Next Decade: Amgen and Novartis

In an era of economic uncertainty and shifting healthcare regulations, few investments offer the stability of dividend-paying stocks with proven resilience. Amgen (AMGN) and Novartis (NVS) stand out as pillars of the biopharma sector, combining robust dividend histories, innovative pipelines, and strategic defenses against patent expirations. For buy-and-hold investors seeking steady income and long-term growth, these companies are positioned to thrive through macroeconomic volatility and sector-specific headwinds.

Amgen (AMGN): A Dividend Giant with Rare Disease Dominance

Amgen has delivered a consecutive dividend increase for over a decade, with its first-quarter 2025 payout rising to $2.38 per share—a 6.7% quarterly jump from the prior quarter. This growth is underpinned by a 3.3% dividend yield, well-covered by earnings (payout ratio of 83%) and bolstered by strong free cash flow.

Pipeline Powerhouse:
Amgen's strategy to mitigate patent cliffs centers on rare disease therapies, which now account for 20% of its revenue and are projected to reach $8–10 billion annually by 2030. Key assets include:
- AMG 714: A bispecific antibody in Phase 3 for acute myeloid leukemia (AML), with potential to expand into other blood cancers.
- AMG 901: A gene therapy for sickle cell disease showing 100% reduction in hemoglobin S in early trials.
- KRYSTEXXA® (pegloticase): Sales grew 19% in 2023 for chronic gout, with global expansion underway.

Patent Cliff Mitigation:
Amgen has delayed biosimilar competition for key drugs like Prolia® (denosumab) until 2025–2026 via settlements, retaining ~50% market share through 2027. The acquisition of Horizon Therapeutics in 2023 added TEPEZZA® ($1.4B in 2023 sales) and UPLIZNA®, diversifying its portfolio and leveraging $500M in annual cost synergies.

Novartis (NVS): Global Diversification Meets Steady Dividends

Novartis has raised its dividend for 28 consecutive years, with its 2024 payout increasing 6.1% to CHF 3.50 per share (yield of 3.5%). The company's $10B share buyback authorization further underscores its commitment to shareholder returns.

Diverse Pipeline, Strategic Acquisitions:
Novartis's pipeline spans cardiovascular, oncology, and rare diseases, with recent wins including:
- Abelacimab: Acquired via the $925M purchase of Anthos Therapeutics, targeting FXI inhibition for cardiovascular diseases.
- Fabhalta® (iptacopan): Gained CHMP approval for C3 glomerulopathy, a rare kidney disease with no existing treatments, and showed efficacy in PNH.
- Scemblix® (asciminib): Demonstrated 96-week superiority over imatinib in first-line chronic myeloid leukemia (CML).

Patent Cliff Defense:
While Entresto® (sacubitril/valsartan) faces U.S. generic competition in 2025, Novartis is extending its lifecycle via subcutaneous formulations and global market expansion. For Cosentyx® (secukinumab), which loses exclusivity in 2029, the drug's two-year efficacy data in hidradenitis suppurativa secures long-term demand. The company also leverages settlements (e.g., with biosimilar maker Sandoz) to manage launch timing and retain market share.

Why These Stocks Are Buy-and-Hold Winners

1. Dividend Safety: Both companies boast low payout ratios (83% for Amgen, 65% for Novartis) and dividend yields above industry averages, supported by diversified revenue streams.
2. Pipeline Depth: Their pipelines address high-growth areas like rare diseases, gene therapies, and oncology, with $8–$10B in combined rare disease revenue by 2030.
3. Patent Cliff Resilience: Through settlements, new formulations, and acquisitions, both firms are extending the commercial lives of core assets while diversifying into untapped markets.
4. Macro-Resilience: Their global footprints and recession-resistant healthcare demand reduce exposure to regional economic downturns.

Investment Advice

For long-term investors:
- Amgen is ideal for those prioritizing dividend growth (6–7% annual increases) and exposure to gene therapy and rare disease innovation.
- Novartis offers dividend stability (3.5% yield) paired with diversified growth across cardiovascular, oncology, and rare diseases.

Risk Considerations:
- Biosimilars: Amgen's Prolia® and Novartis' Cosentyx® face competition post-2025.
- Regulatory Hurdles: Delays in pipeline approvals (e.g., Rocatinlimab for atopic dermatitis) could impact timelines.

Bottom Line: Both companies are engineered for longevity. Add these to your portfolio for decade-long dividend growth and protection against market turbulence.

Final Take: Buy Amgen and Novartis now. Their combination of sustainable dividends, innovative pipelines, and proactive patent strategies makes them unshakable pillars for the next decade.