Shares of Gilead Sciences, Inc GILD are trading higher during Friday’s trading session, bolstered by the Bank of America Securities bullish outlook on the stock.
Bank of America’s nod of confidence drew attention to the underappreciated growth avenues within Gilead Sciences' core HIV segment and its nascent ventures into hematology/oncology.
A Closer Look: Geoff Meacham, analyst at BofA Securities, took the stock from a Neutral rating to a Buy, lifting its price target from $88 to $95. Meacham pinpointed Gilead Sciences' HIV endeavors as an essential driver, set to grow in the coming years, especially with its “next-generation” asset, Lenacapavir.
Coupled with optimistic moves in hematology and oncology, powered by drugs like Trodelvy and Kite, the future looks bright for Gilead Sciences, according to Bank of America.
Related: Gilead Sciences Shares Trade Higher After Bullish Analyst Upgrades Stock
With a potential 25% upside for shares in Gilead Sciences’ future, coupled with its stable dividend payout, how can you position yourself to earn a significant return on your investment?
By The Numbers: Drawing from Gilead Sciences’ current share price of $76.21 and a dividend yield of 3.93%, here’s how you can potentially pocket $500 a month solely from dividends.
To bring in a monthly $500 dividend payout ($6,000 annually), you're looking at buying roughly 2,004 shares, which would run you roughly $152,672. However, if you're leaning towards a smaller monthly dividend of $100, then an investment of $30,535 for 401 shares would work.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. If the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
GILD Price Action: Shares of Gilead Sciences are trading nearly 3% higher to $75.81 Friday afternoon, according to data from Benzinga Pro.
Read Next: How To Earn $500 From Pfizer Stock With Shares Trading At 52-Week Low
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