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3 Companies Turning Big Cash Flow Into Bigger Shareholder Gains
Yahoo Finance· 2025-12-15 15:10
Core Insights - Inflation, interest rates, and economic uncertainty are compelling companies to focus on efficiency, making cash flow maintenance crucial for operations and growth [2] - Strong free cash flow allows companies to return capital to investors through dividends or share buybacks, enhancing shareholder value [2] Company Highlights - Gilead Sciences Inc. (NASDAQ: GILD) reported nearly $4 billion in free cash flow and $4.1 billion in operating cash flow in the latest quarter, driven by high-margin products and strong sales [3][4] - Gilead's diverse drug portfolio, including treatments for HIV and liver disease, supports consistent sales and enables ongoing R&D investment and attractive dividend distributions [4] - The company has maintained a dividend of 79 cents per share for the last four quarters, resulting in a dividend yield of 2.65%, above the healthcare sector average, with a low payout ratio of around 49% [4] - Gilead's shares have increased nearly 30% this year, with analysts projecting an additional 9.5% upside [5] Investment Opportunities - Companies like Gilead Sciences, Applied Materials, and Qualcomm are noted for their solid cash flow and capital returns, making them attractive to investors in the current economic climate [6]