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Saturday, January 28, 2017

RECENT BUY : Gilead Sciences Inc (NYSE: GILD)

We Recently Purchased The Following:



Gilead Sciences Inc (GILD)
Purchased 7 shares of GILD on 1/19/2017 at $71.33
Total Spent: $499.31; added $13.16 in forward dividends.

We currently own shares of Gilead Sciences Inc (GILD) our family's dividend stocks portfolio. We initially purchased shares in GILD back on 9/9/2016 when we picked up 8 shares at $78.53. But with the current price near the 52-week low, we decided to add a few more shares of GILD to our family's dividend stocks portfolio. With our recent purchase, we now own 15 shares of GILD and have lowered our cost basis from $78.53 to $75.17. We also now receive $28.20 a year in dividends from GILD! 

Based on our research, and the numerous articles relating to GILD, we find that GILD is a great value at current prices and a stock we certainly don't mind holding in our dividend stocks portfolio. Below are just a few links to Seeking Alpha articles on GILD:
  1. GILD is a core holding for 2017 - Trey Henninger
  2. Why Gilead is undervalued - Truth Investor
  3. How will Glead far in 2017 - Jonathon Weber
  4. Gilead is a fantastic stock to own at this price - Michael Wiggins De Oliveira
  5. Cure your portolio with Gilead - Blue Chip Investing
  6. Don't Trust Gilead's P/E Ratio - Erick Kobayashi-Solomon
Company Description
From Google Finance:
Gilead Sciences, Inc. is a research-based biopharmaceutical company. The Company focuses on the discovery, development and commercialization of medicines in areas of unmet medical need. The Company's principal areas of focus include human immunodeficiency virus (HIV), liver diseases, such as chronic hepatitis C virus infection and chronic hepatitis B virus infection, cardiovascular, hematology/oncology and inflammation/respiratory. Its HIV products include Genvoya, Stribild, Complera/Eviplera, Atripla, Truvada, Viread, Emtriva, Tybost and Vitekta. The Company's liver diseases products include Harvoni, Sovaldi, Viread and Hepsera. The Company's cardiovascular products include Letairis, Ranexa and Lexiscan/Rapiscan. Its oncology product is Zydelig. Its respiratory products include Cayston and Tamiflu. Its other products include AmBisome and Macugen. The Company's Nimbus Apollo program is a Phase II ready clinical program for NDI-010976 and related metabolic and liver diseases.
With our recent purchase of Gilead Sciences Inc (GILD), the estimated forward dividends for our family's dividend stocks portfolio grew another $13.16, putting our yearly dividends at approximately $2,831/year (excluding our Edwards Jones account) and $3,242/year (including our Edward Jones account).  

Since we already own Gilead Sciences Inc (GILD), the total stocks held in our  dividend stocks portfolios (WF and EJ Accounts) remains at 59 different dividend paying stocks/ETFs and also 5 companies that either don't pay a dividend our has currently suspended their dividends.

Our family's dividend stocks portfolio may be found
by clicking on the link below:

We also maintain an extensive list of stock analysis
that can be access through the link below:

We also just started a list of Recent Buys by other bloggers
that can be access through the link below:

HERE IS A QUICK FACT SHEET FOR THE STOCK I JUST PURCHASED:


Gilead Sciences Inc (GILD)
P/E: 6.59
Payout Ratio: 16%
Dividend Yield: 2.64%

consecutive years of dividend increases
Last Ex-dividend date: 12/13/2016
Next Ex-dividend date: approx. 3/13/2017
Have paid a dividend since: 2015 (1 year)
Pays a dividend 4 times a year
Market Cap: 93.88 Billion
52-week high: $103.10
52-week low: $69.78

Purchased Price: $71.33


What are your thoughts on of recent purchase?

What are you buying?

13 comments:

  1. Awesome buy. Dont think you can go wrong with this company. Of course what do i know LOL. I bought 2 staocks this month OHI and AGNC adding to my REITs

    ReplyDelete
    Replies
    1. Thanks Lol. OHI is a good REIT to own...we also hold shares in our family's dividend stocks portfolio. :) We are not family with AGNC but wow, that yield is impressive if they can keep it up! Either way, the point is you are adding to your portfolio and making a conscious effort to grow your dividends.

      Best wishes and continued success on your personal journey! AFFJ

      Delete
  2. 1 year is too much risk for me. Good buy though at 52 week low.
    DFG

    ReplyDelete
    Replies
    1. Yes, we agree that GILD could have a longer history of dividend growth but with such a low payout ratio and plenty of cash, we feel that we can rely on the dividends for years to come.

      Thank you for your thoughts. Hopefully buying low will allow us some wiggle room towards success. AFFJ

      Delete
  3. Nice buy, do they really only payout at 16%? That leaves plenty of room for long temr growth. Well done.

    ReplyDelete
    Replies
    1. Thank you. I check several sites and the payout ratio was near 16%. The payout ratio is part of the reason why we decided to pull the trigger. AFFJ

      Delete
  4. I like GILD too, I been adding to it recently and will keep adding, they have a lot stuff on pipeline and once it hits the market, the stock will reflect that.

    ReplyDelete
    Replies
    1. Glad to hear from a fellow shareholder. We feel equally optimistic about the future of GILD. We bought in because we have confidence in the stability of the dividends. And as a long term hold, we can wait around for a turn around as long as the dividends keep coming. :)

      Thanks for visiting. AFFJ

      Delete
  5. Nice job. I like GILD. It gets a lot of negative press and some is deserved. But overall, this is a business sitting on a bunch of cash and a decent drug pipeline. I'd like to see GILD acquire a few companies this year to expand patient coverage.

    ReplyDelete
    Replies
    1. Thank you. Yes, it would be nice to have greater exposure to other drugs and an acquisition could certainly help achieve that.

      Cheers to the cash, and with it, hopefully stable dividends. :) AFFJ

      Delete
  6. I have watched this one for some time and have been tempted to buy, but have not done so yet. On the positive side it is trading at a cheap valuation, and my understanding is that the market for their HIV drug is growing. The Hep C drug is not, partly because it works so well, it is not necessary for patients to use it for a lifetime. They have a great balance sheet with no debt, but a lot of the cash is offshore.

    My major concern so that they rely so easily on one or two drugs, but on the other hand they have managed those two drugs exceptionally well. Overall I think likely a very good purchase, and one I may follow at some point. Good luck!

    ReplyDelete
    Replies
    1. Oops - First sentence of last paragraph was intended to begin with "My major concern is that they rely so heavily on one or two drugs..."

      Delete
    2. Well said! Thank you for confirming why we bought GILD. Yes, we would prefer that they have greater exposure to more drugs. But we hope their track record and cash flow will allow them to move forward until the next drug is discovered.

      Best wishes. Hopefully you decid to become a fellow shareholder one day. AFFJ

      Delete