March 18, 2016: Bought 28 shares of GILD at $90.47 per share.
Gilead Sciences, Inc (NASDAQ:GILD) is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines. The company’s primary areas of focus include human immunodeficiency virus, liver diseases such as chronic hepatitis C virus infection and chronic hepatitis B virus infection, oncology and inflammation, and serious cardiovascular and respiratory conditions. GILD markets its products through commercial teams and in conjunction with third-party distributors and corporate partners. The company was founded in 1987 and is headquartered in Foster City, California.
I already own 22 shares of GILD, which I transferred in December 2015 from my Scottrade to DivGro. Adding 28 shares brings my total holding to 50 shares. Because I'm dollar-cost averaging down, my cost basis is reduced to $101.91 and average yield on cost increases to 1.69%.
GILD only recently started paying dividends. The company pays 43¢ per quarter, which equates to 1.90% at my buy price. So far, the company has paid 3 quarterly dividends and is scheduled to pay the next quarterly dividend on March 30.
Below is a chart showing my buy prices:
The drop in GILD's share price is pushing up yield to nearly 2%, which is not to bad for a company that just started paying dividends. My main motivation for owning GILD is the company's growth prospects. Over time, though, I believe the dividend yield will increase to more attractive levels.
Following is a table containing updated ratings of GILD from various sources:
†combined Value/Growth/Momentum score
According to Morningstar, GILD has a fair value of $128.00, so I bought shares at a great discount!
Do you own shares of GILD? With no record of dividend growth, but fantastic EPS growth, do you think GILD is a good dividend growth prospect? Please share your comments below.