Sunday, March 20, 2016

Recent Buy: Gilead Sciences, Inc.


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:

 Dividend.com's DARS Rating 3.5/5 (Recommended)
 S&P Capital IQ's Stock Report (*****Strong Buy
 Thomson Reuters StockReport+  (7/10) Neutral  
 The Motley Fool's CAPS Rating (*****) 
 MorningStar Rating (*****)
 Zacks Rank (Style Score)  1-Strong Buy (VGM:B)
 †combined Value/Growth/Momentum score


According to Morningstar, GILD has a fair value of $128.00, so I bought shares at a great discount!

28 shares of GILD adds $48.16 to DivGro's projected annual dividend income.

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.

4 comments :

  1. "I have a small spanish dividend growth investment portfolio. I am looking to diversy with international stocks. Which 3 - 5 stocks should you recommend for a long term dividend investment strategy?
    Thanks in advance
    "

    ReplyDelete
    Replies
    1. I don't like to recommend stocks, since every investor's situation is so different. My watch list contains stocks from the CCC list that pass a series of filters. Every month I narrow the list down to 10 stocks to consider -- again, these are not recommendations but a short list for consideration. My March list will be published on Seeking Alpha soon (with a post here linking to it).

      Take care,
      FerdiS

      Delete
  2. I a fan of GILD. This stock has been good to me since I added it to my portfolio last summer.

    ReplyDelete
    Replies
    1. Thanks for visiting and sharing, Investment Hunting. GILD is a new dividend payer, but I think over time it should become a big winner!

      Delete

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