GILD - Why Gilead Sciences' 4.6% Yield Doesn't Make The Cut For Smart Investors
2024-05-23 07:00:00 ET
Summary
- Gilead Sciences has a 4.5% yield. The company has struggled with declining profits and sales in recent years.
- The company's growth potential lies in its HIV and oncology treatments, but it faces competition and disappointing trial results.
- Gilead's 4.5% yield and 6% growth potential offer a long-term return potential of 10% to 11%, similar to other dividend ETFs.
- 44% of individual stocks suffer "permanent catastrophic" declines of 70% or more. You should demand higher return potential from any potential investment than you can get with an ETF.
- While I own some GILD, I'm not personally planning to buy shares, not until the company can show signs that it can achieve long-term returns worth the risk of monitoring its complex risk profile.
My goal is to track the 500 world's best companies, and we use a few lists as a proxy.
- Every dividend aristocrat and champion, including foreign ones (25-plus year dividend growth streaks).
- Top 100 holdings in VIG (aristocrat and future aristocrat ETF).
- Top 100 holdings in SCHD (gold standard high-yield blue-chip ETF).
- Top 100 holdings in IWY (gold standard growth ETF).
A recent addition is Gilead Sciences ( GILD ), which many people have asked me about recently, as the yield has risen to an impressive 4.6% and the company hits another 52-week low....
Why Gilead Sciences' 4.6% Yield Doesn't Make The Cut For Smart Investors