IBD’s Income Investor highlights top dividend stocks. This week, we look at Gilead Sciences (GILD) as the drug giant nears a buy point amid continued stability and a growing dividend.
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Gilead Sciences is a blue chip pharmaceutical and biotech, best known for its blockbuster HIV/AIDS drug Bitkarvy. In addition to that compound, which contributes almost half of Gilead’s revenue, the company produces and markets drugs to treat hepatitis, influenza and Covid.
We looked at this top dividend stock in October, impressed by its high yield and steady payouts within the often-volatile biotech sector.
Since then, the stock soared 13% on a stellar third-quarter earnings report in November and then continued higher.
Top Dividend Stock Set To Raise Payout … Again
Gilead currently pays an annual dividend yield of 3.32%, a very attractive payout in the biotech sector. In addition, this top dividend stock has raised its payout annually since it was first introduced in 2015. While not confirmed, the current 72 cents per share quarterly dividend is likely to get another boost in March.
The biotech has enjoyed continued strength and positive results lately, highlighted by the FDA approval for its twice-a-year HIV/AIDS shot Sunclenca on Dec. 22.
Gilead will report Q4 2022 results after the close on Jan. 31. FactSet analysts now forecast a profit of $1.51 per share on revenue of $6.65 billion. Earnings of $7.09 per share are expected for the full year.
However, analysts also expect EPS to fall to $6.79 per share in 2023, and this softening might affect buying interest.
Gilead’s Velkury will drive this weakness after sales of the Covid treatment fell 52% year over year in the third quarter, to $925 million.
In contrast, other drugs in the pipeline have shown strength over the period, with Bitkarvy sales up 22% while the small oncology segment booked a 79% revenue increase.
This top dividend stock is now forming a new base after hitting the 20%-25% profit-taking zone of a multi-month saucer base with buy point of 74.22. The stock just bounced at the 50-day line, establishing a new buy point at 89.84, according to MarketSmith.
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Source: https://www.investors.com/research/the-income-investor/top-dividend-stock-gilead-sciences-nears-buy-point-ahead-of-earnings/?src=A00220&yptr=yahoo