President Donald Trump recently proposed tariffs on pharmaceutical imports from countries like Ireland and India, both key hubs for drug manufacturing. 

As a result, investors are bracing for potential disruptions to the global supply chain. The U.S. remains heavily reliant on imported drugs from low-cost manufacturing hubs like Ireland. 

Trump’s proposed tariffs aim to reduce this dependency and encourage domestic production, but they also risk disrupting an industry that depends on Ireland’s favorable tax rates and skilled workforce. 

Companies like Amgen (AMGN), benefiting from reduced tax rates due to operations in Ireland and Singapore, and Gilead Sciences (GILD), which also has facilities in Ireland, could face higher costs and tighter margins if these tariffs are implemented. 

Analysts warn that these tariffs could lead to higher production costs, reduced profitability, and even drug shortages. As Trump’s tariff threats loom, investors are left questioning whether to hold onto their shares or sell before these policies take effect. 

Let’s dive deeper into what this means for key players like Amgen and Gilead Sciences.

Dividend Stock #1: Amgen (AMGN)

Amgen (AMGN) is a major player in the pharma world, developing treatments for cancer, heart disease, and rare illnesses. The company operates globally and has built a strong reputation for its innovative pipeline and strategic acquisitions, like Horizon Therapeutics, which have expanded its reach into rare disease markets. However, its reliance on manufacturing in Ireland makes it vulnerable to potential tariffs proposed by Trump on pharmaceutical imports.

The stock has had a solid run, gaining 9.4% over the past year and an impressive 19.4% in the year to date. 

Amgen’s forward price-earnings ratio of 14.82x is lower than the sector average of 17.09x, making it relatively undervalued compared to peers. It also offers a reliable dividend yield of 3.1%, backed by 14 years of consecutive increases and a sustainable payout ratio of 43.99%, making it a favorite among income-focused investors despite looming tariff risks.

In its Q4 2024 earnings report, Amgen posted an 11% revenue increase to $9.1 billion and non-GAAP EPS of $5.31, beating expectations. For the full year, revenues hit $33.4 billion, driven by strong sales growth across key therapies like Repatha and BLINCYTO. Looking ahead, the company projects revenues between $34.3 billion and $35.7 billion for 2025, signaling cautious optimism despite pricing pressures.

Amgen is also investing heavily in its future, recently announcing a $1 billion expansion to build a second manufacturing facility in North Carolina.

Analysts remain optimistic about Amgen’s future, with a consensus “Moderate Buy” rating and an average price target of $319.04, implying a modest upside of 2% from its current price. 

While the proposed tariffs could create challenges for its Irish operations, Amgen’s global diversification and strategic investments position it well for long-term growth despite potential hurdles ahead.

Dividend Stock #2: Gilead Sciences (GILD)

Gilead Sciences (GILD) is a biopharmaceutical company that focuses on creating medicines for HIV, hepatitis, and cancer, among other treatment areas. Known for its innovative treatments and strong research efforts, Gilead has built a reputation for tackling unmet medical needs. 

The stock has been performing well, rising 52.4% over the past year and 20.8% so far this year. It’s trading at a forward price-earnings (P/E) ratio of 14.13x, which is lower than the sector average of 17.09x, suggesting it might be undervalued compared to its peers. 

Gilead also offers a solid dividend yield of 2.8%, with 10 consecutive years of increases, making it a reliable choice for income-focused investors. However, Trump’s proposed tariffs on pharmaceutical imports from Ireland could impact its operations and weigh on its otherwise strong appeal.

In Q4 2024, Gilead reported $7.6 billion in revenue, up 6% from the previous year, driven by growth in HIV, oncology, and liver disease sales. Non-GAAP EPS rose to $1.90 for the quarter, while full-year revenue reached $28.8 billion, also up 6%. For 2025, Gilead expects revenue between $28.2 billion and $28.6 billion and adjusted EPS between $7.70 and $8.10, reflecting steady growth despite challenges.

Recently, Gilead presented promising data from its HIV treatment portfolio at CROI 2025 and expanded its partnership with Cognizant (CTSH) to use AI for greater efficiency across its operations. These moves highlight its focus on innovation and operational improvements that could help offset potential tariff impacts.

Analysts remain cautiously optimistic about Gilead’s future, with a consensus “Moderate Buy” rating and an average price target of $111.84, roughly in line with its current trading price. 

Conclusion

In the face of potential Trump tariffs targeting pharmaceutical companies producing in Ireland, both Amgen and Gilead Sciences remain compelling dividend stocks with strong fundamentals. While their global operations and robust pipelines position them well for long-term growth, the looming trade risks could create short-term volatility. Ultimately, whether to jump ship or stay the course depends on your risk tolerance and investment horizon, but these stocks certainly have the resilience to weather turbulent times.