Investing in dependable dividend stocks is one of the most popular retirement investment strategies. That’s because in addition to their capital appreciation potential, fundamentally sound dividend stocks ensure a steady stream of income that helps pay expenses during an individual’s retirement. 

Given the relatively low coupons offered by fixed-income investments currently, owing to the Fed’s ultra-loose monetary policy, many investors are now shifting to equities with substantial dividend payouts and high capital appreciation potential.

Because the rapid macroeconomic recovery should boost the cash flows of most businesses, their dividend payouts should increase or at least remain steady in the future. So, given their solid history of dividend payments, we think PetroChina Company Limited (PTR) and Gilead Sciences, Inc. (GILD) should be the right addition to one’s retirement portfolio now.

PetroChina Company Limited (PTR)

Based in China, PTR delivers a range of petroleum related products, services, and activities. The company operates through four segments: Exploration and Production; Refining and Chemical Products; Marketing; and Natural Gas and Pipeline. PTR is the largest oil and gas producer and distributor in China and one of the largest oil companies in the world.

PTR’s $2.60 annual dividend yields 5.14% at  its current share price. On March 26, the company approved a $1.34 semiannual dividend, payable on August 9. PTR’s dividend payouts have increased at a 22.1% CAGR  over the past three years.

According to the company, PTR achieved the “the best quarterly performance in the past 7 years” in the first quarter of 2021. Its  revenues increased 8.4% year-over-year to RMB551.92 billion ($85.48 billion) in its  fiscal first quarter, ended March 31. Its profit for the period stood at RMB31.65 billion ($4.90 billion) indicating a 337.1% rise year-over-year. The company’s EPS increased 269.7% year-over-year to RMB0.15.

Analysts expect PTR’s revenues to increase 34.7% year-over-year to $377.55 billion in the current year. A  $5.01 consensus EPS estimate for the current year represents a 245.5% rise from the last year. Shares of PTR have gained 48.5% over the past year, and 64.7% year-to-date.

It is no surprise that PTR has an overall A rating, which equates to Strong Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.

The stock also has a grade A for Growth, and a grade B for Value, Stability, and Sentiment. Among the 50 stocks in the B-rated Foreign Oil & Gas industry, PTR is ranked #1.

To see additional PTR Ratings for Momentum and Quality, click here.

Gilead Sciences, Inc. (GILD)

GILD is a research-based biopharmaceutical company that develops  and commercializes medicines in the areas of unmet medical need. The company’s product pipeline includes treatments for human immunodeficiency virus/acquired immune deficiency syndrome (HIV/AIDS), liver diseases, cancer, inflammatory and respiratory diseases and cardiovascular conditions. GILD is based in Foster City, California.

On June 23, Kite, a subsidiary of GILD, announced that Fosun Kite Biotechnology Co., Ltd., a joint venture between Kite and Shanghai Fosun Pharmaceutical (Group) Co., Ltd, has received approval for axicabtagene ciloleucel for the treatment of adult patients with relapsed or refractory large B-cell lymphoma. This is a breakthrough in medical science and should facilitate GILD’s long- term growth.

On June 21, GILD shared positive data from studies concerning the efficacy of Veklury® (remdesivir) for the treatment of COVID-19  patients. Given the large number of people not yet  vaccinated for COVID-19, and thus having a  high risk of being infected with the virus, this drug is expected to be widely demanded in the U.S and internationally.

GILD’s $2.84 annual dividend  yields 4.18% at the current share price. On April 27, the company approved a $0.71 quarterly dividend, payable on June 29. GILD’s dividend payouts have increased at an 8.4% CAGR over the past three years.

GILD’s revenues increased 16% year-over-year to $ 6.34 billion in the fiscal first quarter, ended March 31. Its income from operations grew 20.3% from its  year-ago value to $2.89 billion, while its net income improved 12% year-over-year to $1.72 billion over the period. The company’s EPS has increased 12.3% year-over-year to $1.37.

Analysts expect the company’s EPS to come in at $1.73 in the current quarter, ending June 30, 2021, indicating a 55.9% rise year-over-year. GILD has gained 16.5% year-to-date and 18.9% over the past six months to close yesterday’s trading session at $68.35.

GILD has an overall B rating, which equates to Buy in our proprietary rating system. GILD has an A  grade  for Value, and B for Growth and Quality. It is ranked #5 in the Biotech industry.

Beyond what we’ve stated above, we have also rated GILD for Momentum Stability, and Sentiment. Click here to view all GILD Ratings. 

Click here to checkout our Healthcare Sector Report for 2021

PTR shares were trading at $49.21 per share on Monday afternoon, down $1.39 (-2.75%). Year-to-date, PTR has gained 64.34%, versus a 14.93% rise in the benchmark S&P 500 index during the same period.

About the Author: Subhasree Kar

Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More...

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