Why Gilead Sciences (GILD) Appeals to Income Investors in the Pharma Sector

Gilead Sciences, Inc. (NASDAQ:GILD) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025.

The company rose to prominence during the COVID-19 pandemic thanks to its antiviral drug remdesivir, one of the earliest approved treatments for the virus. However, despite its scientific breakthroughs and commercial achievements, Gilead has lagged behind the broader market over the past ten years, as investors remain cautious about its growth prospects and ability to deliver on its pipeline.

That said, Gilead Sciences, Inc. (NASDAQ:GILD)’s cash position remained stable, which makes it one of the best dividend stocks in the pharma sector. In the first quarter of 2025, the company generated $1.8 billion in operating cash flow and had $7.9 billion available in cash and cash equivalents. During the quarter, it also returned $1 billion to investors through dividends.

Gilead Sciences, Inc. (NASDAQ:GILD) currently offers a quarterly dividend of $0.79 per share and has a dividend yield of 2.90%, as of July 17. The company has raised its payouts every year since 2015.

While we acknowledge the potential of GILD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.