Gilead Sciences Has Raised Its Dividend for 11 Straight Years. Here's Why the Streak Looks Safe.
Key PointsGilead's HIV therapies generate strong free cash flow.
Gilead Sciences has consistently increased its dividend for the past 11 years, reaching a payout ratio of just 29.8%. This indicates a strong financial position to maintain the dividend and fund other operations. The company's HIV treatments, a cornerstone of its business, have been performing well, with an 18% year-over-year increase in sales and nearly doubling of HIV prevention therapy sales.
Gilead's free cash flow has also surged, up 68% year-over-year, reaching $10.6 billion over the past nine months. The company is diversifying its portfolio with investments in oncology and anti-inflammatory treatments, recently opening a research center and planning $32 billion in projects through 2030. Gilead's recent approval of Trodelvy, a drug for bladder and breast cancer, has further boosted its revenue, with sales up 42% year-over-year.
With its oncology and immunology drug pipeline, including emvistegrast, showing promising results, Gilead appears well-positioned to continue its dividend growth streak.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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