Is NASDAQ:GILD suited for dividend investing?

Consider GILEAD SCIENCES INC (NASDAQ:GILD) as a top pick for dividend investors, identified by our stock screening tool. NASDAQ:GILD shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Looking at the Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:GILD was assigned a score of 7 for dividend:

• With a Yearly Dividend Yield of 4.03%, GILD is a good candidate for dividend investing.
• GILD's Dividend Yield is rather good when compared to the industry average which is at 37.64. GILD pays more dividend than 98.83% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.65, GILD pays a better dividend.
• The dividend of GILD is nicely growing with an annual growth rate of 7.27%!
• GILD has been paying a dividend for over 5 years, so it has already some track record.
• As GILD did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Understanding NASDAQ:GILD's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GILD has achieved a 5 out of 10:

• GILD's Altman-Z score of 2.72 is fine compared to the rest of the industry. GILD outperforms 74.29% of its industry peers.
• The Debt to FCF ratio of GILD is 3.18, which is a good value as it means it would take GILD, 3.18 years of fcf income to pay off all of its debts.
• GILD's Debt to FCF ratio of 3.18 is amongst the best of the industry. GILD outperforms 95.33% of its industry peers.

Exploring NASDAQ:GILD's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:GILD, the assigned 8 is noteworthy for profitability:

• GILD has a Return On Assets of 9.42%. This is amongst the best in the industry. GILD outperforms 97.00% of its industry peers.
• Looking at the Return On Equity, with a value of 26.33%, GILD belongs to the top of the industry, outperforming 98.16% of the companies in the same industry.
• GILD has a Return On Invested Capital of 12.57%. This is amongst the best in the industry. GILD outperforms 97.00% of its industry peers.
• The last Return On Invested Capital (12.57%) for GILD is above the 3 year average (11.27%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 21.45%, GILD belongs to the top of the industry, outperforming 97.50% of the companies in the same industry.
• With an excellent Operating Margin value of 30.16%, GILD belongs to the best of the industry, outperforming 97.50% of the companies in the same industry.
• With an excellent Gross Margin value of 78.81%, GILD belongs to the best of the industry, outperforming 85.98% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of GILD for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.