June 15, 2025 a 03:30 am
GILD: Dividend Analysis - Gilead Sciences, Inc.
Gilead Sciences, Inc. shows a promising dividend profile with a current yield, consistent history, and steady growth. Investors looking for moderate risk and potential for income stability may find Gilead a suitable option. The recent metrics indicate a resilient performance amidst changing market environments.
📊 Overview
Within the Healthcare sector, Gilead Sciences, Inc. presents as a solid dividend player. The combination of current yield, historical performance, and absence of recent cuts or suspensions enhances its appeal among dividend investors.
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend yield | 2.84% |
| Current dividend per share | 3.14 USD |
| Dividend history | 11 years |
| Last cut or suspension | None |
🗣️ Dividend History
Gilead has a strong track record of maintaining and growing dividends steadily over the years, which signifies stability and commitment to returning value to shareholders.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.58 |
| 2024 | 3.08 |
| 2023 | 3.00 |
| 2022 | 2.92 |
| 2021 | 2.84 |
📈 Dividend Growth
The growth of dividends over the past three and five years reflects consistent corporate strategy and financial health, suggesting a reliable income stream for investors.
| Time | Growth |
|---|---|
| 3 years | 2.74% |
| 5 years | 4.10% |
The average dividend growth is 4.10% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Analyzing payout ratios gives insight into how sustainable a company's dividend payments are relative to its earnings and cash flows.
| Key figure | Ratio |
|---|---|
| EPS-based | 65.63% |
| Free cash flow-based | 39.70% |
The ratios indicate a sustainable payout from both EPS and FCF perspectives, with EPS at 65.63% and FCF at 39.70%, signaling prudent financial management.
⚙️ Cashflow & Capital Efficiency
A strong free cash flow yield and efficient capital allocation reflect a company's operational effectiveness and potential for maintaining dividend payments.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 8.95% | 7.34% | 7.74% |
| Earnings Yield | 0.42% | 5.60% | 4.26% |
| CAPEX to Operating Cash Flow | 5.04% | 7.31% | 8.02% |
| Stock-based Compensation to Revenue | 2.98% | 2.93% | 2.36% |
| Free Cash Flow / Operating Cash Flow Ratio | 95.17% | 92.69% | 91.98% |
Gilead's high free cash flow yield and efficiency in capital expenditure relative to operating cash underscore robust cashflow generation and efficient capital management.
🏦 Balance Sheet & Leverage Analysis
The financial structure and leverage ratios provide insight into a company's capacity to handle debt while maintaining operational flexibility.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.38 | 1.09 | 1.19 |
| Debt-to-Assets | 0.45 | 0.40 | 0.40 |
| Debt-to-Capital | 0.58 | 0.52 | 0.54 |
| Net Debt to EBITDA | 3.77 | 1.80 | 2.24 |
| Current Ratio | 1.60 | N/A | N/A |
| Quick Ratio | 1.45 | 1.27 | 1.15 |
| Financial Leverage | 3.05 | 2.72 | 2.97 |
The analysis points to Gilead's balanced debt levels and liquidity ratios, supporting its ability to meet financial obligations comfortably.
💡 Fundamental Strength & Profitability
These profitability metrics offer insight into Gilead's ability to generate profit relative to its sales, assets, and equity, reflecting overall operational efficiency.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 2.48% | 24.81% | 21.62% |
| Return on Assets | 0.81% | 9.12% | 7.27% |
| Margins: Net | 1.67% | 20.89% | 16.83% |
| Margins: EBIT | 5.80% | 28.78% | 24.74% |
| Margins: EBITDA | 15.42% | 38.71% | 32.45% |
| Margins: Gross | 78.26% | 76.04% | 79.26% |
| R&D to Revenue | 20.07% | 21.09% | 18.24% |
Strong profitability and margins illustrate Gilead’s efficient operations and commitment to reinvesting in R&D to sustain future growth.
📉 Price Development
Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 30/40
Rating
Gilead Sciences, Inc. demonstrates a solid dividend profile with reliable growth and stability, making it an attractive option for income-oriented investors. While there may be room for improvement in some financial areas, the company maintains a healthy cash flow and balance sheet footing, supporting a favorable long-term outlook.