Daily Stock Analysis: Gilead Sciences

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The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its fourteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the third of five healthcare sector stock candidates vying to be that fourteenth selection in the Vista portfolio.

My subject today is a large-cap drug manufacturer - a general company named Gilead Sciences Inc. Its trading ticker symbol is GILD. This is my first report on Gilead Sciences Inc for Vista and it has yet to be selected for any of my portfolios.

Gilead Sciences develops and markets therapies to treat life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. 

The acquisitions of Corus Pharma, Myogen, CV Therapeutics, Arresto Biosciences, and Calistoga have broadened this focus to include pulmonary and cardiovascular diseases and cancer. 

Gilead's acquisition of Pharmasset brought rights to hepatitis C drug Sovaldi, which is also part of combination drug Harvoni, and the Kite, Forty-Seven, and Immunomedics acquisitions boost Gilead's exposure to cell therapy and noncell therapy in oncology.

Gilead Sciences, Inc. was founded in 1987 and is headquartered in Foster City, California.

I use three key data points to gauge dividend equities or funds like Gilead Sciences Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

GILD Price

Gilead's price per share closed at $61.17 yesterday. A year ago its price was $66.93. Price is down $5.76 or about 8.6% on the year.

If Gilead's stock trades in the range of $55 to $75 this next year, its recent $51.17 price might rise by $8.83 to reach $70.00 by December 9, 2021. 

GILD Dividends

Gilead's most recently declared quarterly dividend was $0.68 payable December 30th. Dividends are estimated to total $2.72 per share annually and yield 4.45% at yesterday's $61.17 closing price.

GILD Gains?

Adding the $2.72 annual anticipated dividend to my $8.83 optimistic estimate of Gilead Sciences Inc's price upside shows an $11.55 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little under $1,000.00 today in Gilead Sciences Inc at $61.17 and we would buy 16 shares of GILD stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.63 per share.

Subtract that maybe $0.63 brokerage cost from my estimated $11.55 gross gain per share results in a net gain of $10.91 X 16 shares = $174.72 for a 17.5% net gain on a $978.72 investment.

So it goes that Gilead Sciences Inc shows a possible 17.5% net gain including a 4.45% dividend yield. It could be more, it could be less. 

All of the estimates above are speculation based on the past history of Gilead Sciences Inc. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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