This article highlights the importance of a long-term investment strategy and examines the impressive twenty-year investment result of Gilead Sciences Inc. A $10,000 investment made in 2003 has a total return of 1,960.62%, with an annualized rate of return of 16.32%. The current dividend yield of Gilead Sciences Inc is approximately 3.81%, and the yield on cost is 76.20%. Automatic dividend reinvestment can contribute to compounding returns over the long-term. The Peter Lynch quote emphasizes the importance of saving and investing for long-term prosperity. The top five keywords relevant to the article’s content are yield, dividend, Gilead Sciences Inc, investment, and long-term.
Every $10K Invested into Gilead Sciences in 2003 is Now Worth This
The renowned investor, Warren Buffet, once stated, “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.” This quote underscores the importance of a long-term investment strategy that considers the business’s potential over a twenty-year period.
This article examines what happened to the investors who purchased Gilead Sciences Inc (NASD: GILD) shares twenty years ago, in 2003. The investment outcome is impressive, with an annualized return of 16.32%. A $10,000 investment made in 2003 is now worth $205,886.32, which is a total return of 1,960.62%. These figures were computed using the Dividend Channel DRIP Returns Calculator.
The starting share price was $5.00, and the ending share price was $78.76, with dividends reinvested. Over the twenty-year period, Gilead Sciences Inc paid $19.24 per share in dividends to shareholders, contributing to the total return.
It is worth noting that the current dividend yield of Gilead Sciences Inc is approximately 3.81% based on the most recent annualized dividend rate of $3 per share. The yield on cost, which expresses the current annualized dividend of $3 against the original purchase price of $5.00 per share, is 76.20%.
Investors can draw a valuable lesson from this success story by adopting a long-term investment strategy and identifying outstanding businesses with exceptional management. Moreover, automatic dividend reinvestment can also contribute to compounding returns over the long-term.
In conclusion, the case of Gilead Sciences Inc shows that patient investors who choose outstanding businesses with exceptional management and implement a long-term investment strategy can achieve exceptional returns. It is essential to consider the potential of a business over a twenty-year period, and automatic dividend reinvestment can compound returns over the long-term.
A Thought-Provoking Quote on Investment
Peter Lynch once said, “In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.” This quote highlights the importance of saving and investing for long-term prosperity. For more investment insights, check out the Warren Buffett Dividend Stocks slideshow.
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