A high-yielding dividend stock can be an excellent source of recurring income for investors. And the good news is you don't need to take on significant risk to find one, either. One particularly attractive stock that is on sale right now is Gilead Sciences (NASDAQ:GILD). After a drop in its share price after reporting earnings earlier this month, the stock is again near its 52-week low.
Gilead is coming a fourth-quarter earnings report where sales of $7.2 billion dropped 2% year over year. However, for income investors, it still looks to be a solid investment. The company projects that its 2022 earnings per share will come in between $4.70 and $5.20. Gilead recently raised its dividend by 2.8% and now it is paying $2.92 per share for a full year – well below even the low end of its earnings forecast. The increase in dividend means that Gilead is now yielding around 4.5% annually – more than three times the S&P 500 average dividend yield of just 1.3%.
Although investors may be down on the company's recent results and the lack of growth, there are more opportunities ahead for Gilead that make it an attractive long-term hold. The company is looking to expand its oncology portfolio which can give the business more potential to grow down the road. Today, HIV makes up the bulk of its top line, generating sales of $16.3 billion in 2021, which is 60% of the $27.3 billion it reported in total revenue.
Multiple analysts see the stock soaring to more than $80 per share, which would be an upside of more than 20% from where it is today. That potential combined with a solid dividend, makes Gilead an attractive buy on the dip today.
