Investing in stocks can be a great way to generate passive income, and one company that offers this opportunity is Gilead Sciences, Inc. (NASDAQ: GILD). Gilead Sciences is a biopharmaceutical company that focuses on discovering, developing, and commercializing medicines to address unmet medical needs in the United States, Europe, and internationally. With the company set to report its Q4 2024 earnings on Feb. 11, 2025, now may be a good time to consider investing in Gilead Sciences stock.
According to Wall Street analysts, Gilead Sciences is expected to post an EPS of $1.55 for Q4 2024, down from $1.72 in the year-ago period. Quarterly revenue is expected to be $7.14 billion, slightly up from $7.12 billion in the year-ago period. The 52-week range of Gilead Sciences stock price was $62.07 to $98.90, making it an attractive option for investors looking to earn passive income.
One of the key benefits of investing in Gilead Sciences stock is its dividend yield, which currently stands at 3.38%. Over the last 12 months, the company has paid $3.08 per share in dividends. This means that if you want to make $100 per month – $1,200 annually – from Gilead Sciences dividends, your investment value needs to be approximately $35,503, which is around 390 shares at $91.09 each.
It’s important to understand how dividend yield calculations work when estimating potential income from your investment. By dividing the desired annual income ($1,200) by the dividend yield (3.38%), you can determine the investment value needed to generate the desired income. In this case, $1,200 / 0.0338 = $35,503 to generate an income of $100 per month.
Gilead Sciences has a track record of consistent dividend hikes, with the company raising its dividend consecutively for the last nine years. This makes it an attractive option for income-focused investors looking to make a steady income from their investments. Additionally, as the company continues to grow and expand its product offerings, there may be more upside for investors in the future.
In summary, investing in Gilead Sciences stock can be a lucrative way to earn passive income. With a solid dividend yield and a history of consistent dividend hikes, the company offers a reliable source of income for investors. If you’re looking to generate $100 per month in passive income, owning 390 shares of Gilead Sciences stock could be a smart investment choice.
Overall, Gilead Sciences presents a compelling opportunity for investors looking to earn passive income through stock investments. With a strong track record of dividend growth and a promising outlook for the future, Gilead Sciences stock is worth considering for those seeking to build a diversified investment portfolio.
