July 23, 2026 a 12:46 pm
GILD: Dividend Analysis - Gilead Sciences, Inc.
Gilead Sciences, Inc. presents a stable dividend profile with a modest yield of 2.59%. Its history of 12 continuous years of dividend payments without any cuts or suspensions showcases its commitment to delivering shareholder returns. However, the company's dividend growth appears slow, potentially impacting long-term yield attraction.
📊 Overview
Gilead Sciences operates within the healthcare sector and is known for its consistent dividend payments, reflecting operational stability.
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend yield | 2.59% |
| Current dividend per share | 3.22 USD |
| Dividend history | 12 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history of Gilead Sciences demonstrates its reliability and strength in maintaining consistent shareholder rewards.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.64 |
| 2025 | 3.16 |
| 2024 | 3.08 |
| 2023 | 3.00 |
| 2022 | 2.92 |
📈 Dividend Growth
Dividend growth analysis indicates modest growth potential, crucial for long-term income-focused investors.
| Time | Growth |
|---|---|
| 3 years | 2.67% |
| 5 years | 3.04% |
The average dividend growth is 3.04% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The EPS-based and FCF-based payout ratios are good indicators of sustainable dividend practices.
| Key figure | Ratio |
|---|---|
| EPS-based | 43.37% |
| Free cash flow-based | 39.06% |
Both payout ratios are comfortably below 50%, indicating a manageable dividend payout that doesn't over-leverage the company's earnings or cash flows.
Cashflow & Capital Efficiency
Understanding cash flow dynamics and capital allocation is vital in assessing a company's operational efficiency.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 6.19% | 8.95% | 7.34% |
| Earnings Yield | 5.57% | 0.42% | 5.60% |
| CAPEX to Operating Cash Flow | 5.33% | 4.83% | 7.31% |
| Stock-based Compensation to Revenue | 3.04% | 2.90% | 2.82% |
| Free Cash Flow / Operating Cash Flow Ratio | 94.38% | 95.17% | 92.69% |
| Return on Invested Capital | 21.53% | 2.36% | 11.82% |
The stable cash flow ratios reflect Gilead's competence in utilizing its resources efficiently, ensuring strong capital returns and operational liquidity.
Balance Sheet & Leverage Analysis
Healthy leverage ratios and a balanced financial position fortify a company's capacity to meet short and long-term obligations.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.08 | 1.38 | 1.09 |
| Debt-to-Assets | 41.67% | 45.28% | 40.22% |
| Debt-to-Capital | 52.00% | 58.02% | 52.25% |
| Net Debt to EBITDA | 1.25 | 3.77 | 1.80 |
| Current Ratio | 1.97 | 0.00 | 0.00 |
| Quick Ratio | 1.31 | 1.45 | 1.27 |
| Financial Leverage | 2.60 | 3.05 | 2.72 |
The company's leverage structure is sound, although varying leverage indicators require monitoring to avoid potential financial strain.
Fundamental Strength & Profitability
Key profitability metrics and fundamental ratios underscore Gilead's competitive position and resource optimization.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 37.49% | 2.48% | 24.81% |
| Return on Assets | 14.42% | 0.81% | 9.12% |
| Net Margin | 28.90% | 1.67% | 20.89% |
| EBIT Margin | 36.75% | 5.80% | 28.78% |
| EBITDA Margin | 46.12% | 15.42% | 38.71% |
| Gross Margin | 78.83% | 78.26% | 76.04% |
| R&D to Revenue | 19.48% | 20.54% | 21.09% |
The profitability ratios indicate a robust financial health, with substantial returns on equity demonstrating effective management strategies.
📉 Price Development
Dividend Scoring System
| Criteria | Score (1-5) | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Score: 31/40
⚠️ Rating
Gilead Sciences, Inc. maintains a reliable dividend profile with commendable stability and continuity, suitable for conservative dividend investors. Despite promising stability, attention should be paid to its moderate dividend growth and financial leverage metrics. Overall, Gilead presents a somewhat balanced dividend proposition.
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