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Remdesivir Maker Gilead Sciences Declares Dividend; Yield Is 3.9%

By Eric Volkman – Jul 31, 2020 at 5:51PM

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The company will pay the new distribution in September.

Although it isn't particularly famed as a dividend stock, Gilead Sciences (GILD -1.43%) is nevertheless a consistent payer of such distributions. Reinforcing this, the company -- these days considered a coronavirus stock due to its COVID-19 drug remdesivir -- has declared its latest quarterly dividend.

A dividend of $0.68 per share will be handed out on Sept. 29 to investors of record as of Sept. 15. On Friday's closing stock price, this would yield 3.9%.

Since initiating its payout in February of 2015, the pharmaceutical company has dispensed it in every quarter. Over that stretch of time, it has increased gradually, from an initial $0.43 per share to the present level.

Pills spilling out onto U.S. currency.

Image source: Getty Images.

Although Gilead has been a coronavirus stock star due to recent encouraging news about remdesivir's repurposing, its most recently reported quarter wasn't exactly a standout.

As reported on Thursday, the company posted notable declines in headline financials for its second quarter of fiscal 2020. Sales fell by 10% on a year-over-year basis, while it flipped to a bottom-line loss for the period. Stripping out the pricey ($4.9 billion) acquisition of biotech Forty Seven, the company still would have seen an erosion in profit -- earnings per share in that case were $1.11, well down from the $1.72 per share of Q2 2019.

Gilead shares fell by 3.9% on Friday, despite the happy news about the new dividend. The shares declined at a rate considerably deeper than that recorded by the top equity indexes on the day.

 

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool has a disclosure policy.

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