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Actionable news in GILD: Gilead Sciences, Inc.,

Here's What You Should Buy, Y'all


A question from another contributor was posed: He sold one thing, what should he purchase?

That contributor is seeking diversification and reduced trading costs.

Opinions will vary widely, but there is a fairly easy way to narrow down the choices.

(click to enlarge, images from respective company websites)

I'm a reader too, right?

I came across an article on our front page by Mike Nadel today titled "Apple? Nike? Starbucks? Gilead? What Should I Buy, Y'all?". Interesting concept, having the readers take a stab at your allocations for you. I'd like to issue a reply here in a couple of terms, from both the percentages of holdings, as well as from where someone with none of these holdings might want to try to drop anchor.

Well I'll tell you what, I actually get similar requests to this from various people in the comments area and also from conversations away from Seeking Alpha. This is a good chance for me to show you some tricks I use to answer a question like this one.

The "Life Cross". Sweet Salvation.

I did two things to start off with; first, I put every tick symbol referenced in Mike's article into a spreadsheet, and organized them in two ways: Current dividend yield, and P/E ratio. These are as of market close on 8/9/2016.

Company Name Yield P/E
Apple (AAPL) 2.12


Amgen (AMGN) 2.3 17.61
Costco (COST) 1.07 31.73
CVS/Caremark (CVS) 1.75 22.42
Deere (DE) 3.06 15.83
Gilead Sciences (GILD) 2.34 6.96
General Mills (GIS) 2.72 25.61
Johnson & Johnson (JNJ) 2.58 23
McDonald's (MCD) 2.99 22.59
McKesson (MCK) 0.58 20.38
3M (MMM) 2.49 22.77
Altria (MO) 3.4 23.13
Nike (NKE) 1.15 25.82
Reynolds American (RAI) 3.43 13.35