15 Best Next Generation Dividend Aristocrats to Buy

11. Amgen Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 69

Amgen Inc. (NASDAQ:AMGN) is one of the best next generation dividend aristocrat stocks. The company has built a solid track record of dividend growth, supported by consistent cash generation. In the first quarter of 2025, it generated $1.0 billion in free cash flow, up from $0.5 billion in the same period of 2024. The increase was partly due to a one-time $800 million tax payment made in Q1 2024, along with improved business performance, though partially offset by working capital timing and higher capital spending.

Amgen Inc. (NASDAQ:AMGN)’s operating cash flow for the quarter rose to $1.4 billion, compared to $0.7 billion a year earlier. During this period, the company returned $1.3 billion to shareholders through dividends, highlighting its ongoing focus on delivering value.

As of March 31, 2025, the company held $8.8 billion in cash and cash equivalents, with total debt standing at $57.4 billion.

Alongside its consistent dividend growth, Amgen Inc. (NASDAQ:AMGN) stands out as a strong dividend contender due to its modest payout ratio of 44%. This indicates it distributes a sustainable portion of its earnings as dividends while maintaining financial flexibility. Despite significant investments in research and development, the company manages to reward shareholders without straining its balance sheet.

Since initiating its dividend in 2011, the company has increased its payout every year. Over the past ten years, the dividend has grown by an impressive 201.3%. It offers a quarterly dividend of $2.38 per share and has a dividend yield of 3.22%, as of June 14.

Amgen Inc. (NASDAQ:AMGN) is focused on discovering, developing, producing, and delivering cutting-edge medicines that support millions of patients in battling some of the most challenging diseases worldwide.