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Gilead Sciences Delivered a Dividend Yield of 3.01%

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Dividend overview

In the third quarter, Gilead Sciences (GILD) delivered a dividend yield of 3.01%. In July, Gilead Sciences announced a cash dividend of $0.57 per share for the third quarter. Gilead Sciences announced that it would pay the dividend on September 27 to its shareholders of record on September 14. In the first and second quarters, Gilead Sciences delivered a dividend of $0.57 per share.

In 2017, Gilead Sciences delivered a quarterly dividend of $0.52 per share during each quarter, which rose from $0.47 per share in each quarter of 2016. In each quarter of 2015, Gilead Sciences delivered a quarterly dividend of $0.43 per share.

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Recent developments

In September, Gilead Sciences (GOLD) announced that through its newly created subsidiary, Asegua Therapeutics, the company plans to launch generic versions of Epclusa and Harvoni in the US market. Harvoni and Epclusa are Gilead Sciences’ top anti-HCV (hepatitis C virus) therapy.

In September, Gilead Sciences entered into a strategic collaboration with Precision BioSciences for development of therapies to target the in vivo elimination of hepatitis B virus. This therapy uses Precision BioSciences’ ARCUS, a genome editing platform.

According to the terms of the agreement, Precision BioSciences would be primarily responsible for the development, formulation, and preclinical studies. Gilead Sciences would undertake the clinical development and commercialization activities.

According to the agreement, Gilead Sciences is expected to completely fund the R&D (research and development) activities. Precision BioSciences is subject to receive milestone payments of up to $445.0 million and royalties on the commercialization of products developed under this collaboration.

The iShares Nasdaq Biotechnology ETF (IBB) invests ~8.26% of its total portfolio holdings in Gilead Sciences. 

Stock performance

Gilead Sciences (GILD) stock closed at $75.65 on September 26, which is ~18.0% below its 52-week high of $59.54. Gilead Sciences hit its 52-week low of $64.27 on May 3. On September 26, Gilead Sciences stock closed at $75.65, which represents ~2.0% growth in September.

Analysts’ recommendations

Of the 27 analysts tracking Gilead Sciences in September, six recommended a “strong buy” while 11 analysts recommended a “buy” rating. Ten analysts recommended a “hold” rating.

On September 26, Gilead Sciences had a consensus 12-month target price of $88, which represents an ~16.33% return on investment over the next 12 months.

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