In Our 2024 Investment Strategy for Equities, we introduced our DIVOS™ strategy and during this today’s market turmoil, we initiated a very small position in GILD (Gilead Sciences) and intend to hold and accumulate this stock for the foreseeable future.
Here’s how we think it fits our DIVOS model.
Demographics
Gilead is a bio pharmaceutical company that discovers, develops and commercializes medicines all over the world. Gilead is down 9 percent from recent highs and we think now is a good time to add a small position and accumulate periodically.
Income
GILD currently has a dividend of 3.77 percent, We like the stock because we think the dividend growth potential is excellent and with millions of baby boomers aging more and more it’s prudent we be positioned in this industry. GILD has a fantastic net income per employee of $345k as of 2023 with a five year average of $305k.
Value
As of the time of this post, Gilead has dropped because of a setback in late-stage trials for Trodelvy but all companies experience setbacks and eventually get past them. We will DRIP our shares as we earn dividends.
Options
GILD has an options market and we look forward to selling cash secured PUTS and sell covered calls on this stock to squeeze more value and profits out of this equity. As of January 24 2024 the call option table below going far out into January 2025 shows a possible 9% return sans dividends for the call option.
S&P 500
GILD is a member of the S&P 500 and is categorized as Health care and serves as a diversification point in our portfolio.
We’ll let you know as we accumulate more and it may be a while since the stock market keeps shooting for the moon and it’s harder and harder to find value. Stay tuned, stay profitable and stay solvent…