A decade ago, Amgen Inc. (NASDAQ: AMGN) was around $121.45 per share. Fast forward to early October 2025, and the biotech colossus’s stock value is slightly more than $297.89. Along the way, a simple $1,000 investment in shares of Amgen would have increased dramatically—and if dividends were automatically reinvested, the total return is even greater.
Share price growth: From $121 to $298
On 31 December 2015, Amgen closed at around $121.45. On 3 October 2025, it closed at about $297.89. This change in price alone indicates a 145.1% rise over the decade, i.e., a $1,000 investment made towards the end of 2015 would have been worth around $2,452 strictly based on capital appreciation. This sharp rise captures the impressive growth Amgen experienced in the decade-long biotech sector.
The dividends reinvested effect
Amgen has been following a consistent dividend policy, where payments have gone up year after year, which adds a precious extra dimension to overall returns on investment. When reinvested rather than taken in cash, the benefits become clear. Total return data shows Amgen’s 10-year total return price with reinvested dividends at 166.1%. With this included, that initial $1,000 investment would have grown higher towards $2,661 as of October 2025, which illustrates how reinvested dividends can really boost overall earnings.
Annualized returns compared
Cutting the returns into yearly terms shows the power of dividends and compounding. The price-only annualized return over the ten years ends up being about 9.6% each year. But the total return with reinvestment of dividend increases that number for the year to about 10.4% each year. This difference of nearly 0.8 percentage points annually does not necessarily sound impressive, but when added over a ten-year period it constitutes a noticeable increase in the worth of the investment, solidifying the advantage for long-term investors of dividend reinvestment.
Why Amgen’s dividends matter
Amgen’s dividend yield has been in the range of 3% for the past decade, with incrementing increases year by year that mirror the company’s consistent cash flows and commitment to returning capital to shareholders. For long-term investors, this consistent income stream along with value appreciation in the share price is a more predictable and potentially less risky wealth accumulation profile than simply relying on capital appreciation. The dividend component thus plays an extremely critical role in Amgen’s investment attractiveness.
Key takeaways for investors
Looking at these figures as a whole, several key points can be deduced. First, the appreciation in the share price alone turned $1,000 into some $2,452 over ten years, representing good growth in Amgen’s share price. Second, when dividends are reinvested, the value grows even higher, to some $2,661—nearly 2.6 times the original investment. Finally, the compounding effect of dividends increases the annualized return by nearly one percentage point per year, clearly demonstrating why reinvesting dividends can significantly impact total investment performance over time.
For investors seeking a blend of growth and income over the long haul, Amgen’s decade-long track record offers a compelling example of how share price gains combined with dividend reinvestment can steadily build wealth.
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