Is NASDAQ:GILD a Good Fit for Dividend Investing?

Take a closer look at GILEAD SCIENCES INC (NASDAQ:GILD), a stock of interest to dividend investors uncovered by our stock screener. NASDAQ:GILD excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Understanding NASDAQ:GILD's Dividend Score

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NASDAQ:GILD has achieved a 7 out of 10:

• GILD has a Yearly Dividend Yield of 4.18%, which is a nice return.
• GILD's Dividend Yield is rather good when compared to the industry average which is at 14.12. GILD pays more dividend than 98.98% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.50, GILD pays a better dividend.
• On average, the dividend of GILD grows each year by 7.27%, which is quite nice.
• GILD has been paying a dividend for over 5 years, so it has already some track record.
• GILD has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Deciphering NASDAQ:GILD's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:GILD has received a 5 out of 10:

• Looking at the Altman-Z score, with a value of 2.69, GILD is in the better half of the industry, outperforming 70.05% of the companies in the same industry.
• 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.
• With an excellent Debt to FCF ratio value of 3.18, GILD belongs to the best of the industry, outperforming 95.26% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:GILD

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:GILD scores a 7 out of 10:

• Looking at the Return On Assets, with a value of 9.42%, GILD belongs to the top of the industry, outperforming 97.29% of the companies in the same industry.
• GILD has a better Return On Equity (26.33%) than 98.31% of its industry peers.
• GILD's Return On Invested Capital of 13.13% is amongst the best of the industry. GILD outperforms 97.29% of its industry peers.
• GILD has a Profit Margin of 21.45%. This is amongst the best in the industry. GILD outperforms 97.80% of its industry peers.
• GILD's Operating Margin of 30.16% is amongst the best of the industry. GILD outperforms 97.80% of its industry peers.
• With an excellent Gross Margin value of 78.81%, GILD belongs to the best of the industry, outperforming 86.13% of the companies in the same industry.

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For an up to date full fundamental analysis you can check the fundamental report of GILD

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.