Looking For Growth, Income, and Stability? This Stock Could Offer All 3

Investment styles come in various shapes and sizes. Some focus on growth, others seek regular income through dividends, and others are after stability. The choice depends on many factors, including each investor's goals and preferences. But what if there were a stock that had a decent combined mix of all three of these approaches? That's not just wishful thinking, either: one company to consider along those lines is Amgen (NASDAQ:AMGN), a biotech giant.

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The growth angle

Amgen has been posting strong financial results. In the second quarter, the company's revenue increased by 10% year over year -- a strong performance for a drugmaker of this size -- to $10.1 billion.

Amgen is facing the loss of patent exclusivity for denosumab, a medicine approved to treat several bone-related conditions. Sales are growing at a good clip despite that, thanks to the company's diversified portfolio.

The biotech leader had an impressive 22 products delivering at least double-digit sales growth, and 17 medicines with annualized sales of at least $1 billion in the second quarter. True, Amgen will face more patent cliffs through the end of the decade, including for Otezla and Enbrel, two immunology medicines.

But note that neither contributes much to sales growth anymore. Revenue from both medicines declined in the second quarter. Otezla is facing stiff competition, while Enbrel is succumbing to government-led price negotiations in the U.S. Their patent cliffs will accelerate sales decline. Still, Amgen has already begun moving beyond these products.

Newer therapies, most of which won't lose patent exclusivity anytime soon, are doing much of the heavy lifting in driving sales growth. The list includes Tezspire, a medicine for asthma, Tepezza, a therapy for thyroid eye disease, and Imdelltra, a cancer drug. Further, label expansions and brand-new approvals will help boost sales growth over the medium term.

For instance, Amgen recently announced positive Phase 3 clinical trial results for Imdelltra, when combined with another cancer medicine called Imfinzi, in certain patients with small-cell lung cancer. The biotech noted that the combo treatment reduced the risk of death by 58% -- an unprecedented result in this indication -- compared to Imfinzi alone.

A label expansion here could strengthen Imdelltra's market position. Amgen could also launch MariTide, an investigational GLP-1 medicine, within the next few years. MariTide is undergoing Phase 3 studies for obesity and some obesity-related conditions and could be administered monthly (or less frequently), potentially making it much more convenient than current daily or weekly anti-obesity options.

Between Amgen's deep lineup and pipeline, the company looks well-positioned to overcome upcoming patent cliffs and generate strong sales and earnings growth over the long term.

Defying bear markets

Amgen offers products that remain in high demand regardless of economic conditions. So, the company is unlikely to experience significant declines in revenue, even during a market downturn, which can allow it to outperform most in challenging conditions. That doesn't mean Amgen isn't affected by downturns. But its business is resilient enough to navigate them relatively well. And the company has proven that in the past.

In 2022, even as broader equities lost significant market value, Amgen's shares climbed by about 16%. Amgen's stock also performed well amid the broader equity market meltdown that happened in 2008. We can't be certain that Amgen will always gain as the market loses, but over the long run, the company could handle bear markets better than most.

The dividend is rock solid

Amgen has an excellent dividend program. The company initiated payouts in 2011 and has increased its dividends every year since. And we aren't talking about small increases either. Over the past decade, Amgen's dividend has grown by 152%. Yet the company's trailing-12-month cash payout ratio is 51.9% -- not prohibitively high. Amgen can support additional dividend increases, and the company offers a forward yield of 2.3%, which is much higher than the S&P 500's average of 1.1%. In short, Amgen is a good pick for income seekers, and that's in addition to offering solid growth prospects and stability.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amgen. The Motley Fool has a disclosure policy.