Is THIS Popular Biotech Safe?

It could all come down to cash flow... [Wealthy Retirement]( SPONSORED [Bill O'Reilly Pays Money to Be a Member of This Mysterious Club (See Why)]( [AG & BOR Handshake]( The Club's leader shakes hands with Bill O'Reilly It's not Scientology or anything like that. But you've got to see the unusual Club Bill O'Reilly belongs to [here](. [SAFETY NET]( A Big Biotech on the Verge of an Upgrade Marc Lichtenfeld, Chief Income Strategist, The Oxford Club [Marc Lichtenfeld] Gilead Sciences (Nasdaq: [GILD]( made a lot of headlines earlier in the year when President Trump received the company's drug remdesivir as part of his treatment for COVID-19. Since then, doctors have become less enthusiastic about remdesivir's effectiveness in treating the virus, though [it was an early favorite]( at the beginning of the pandemic. Gilead is best known for its HIV medicines, which turned the disease from a killer to a manageable condition for most patients. Gilead also has drugs for hepatitis, various cancers and angina, and it is the maker of flu treatment Tamiflu. The biotech company has paid and [raised its dividend]( for five years in a row. Shareholders now receive $0.68 per share quarterly, which comes out to a 4.5% yield. Let's see whether that yield is safe... SPONSORED [If a Janitor Can Use "Income for Life" Stocks to Build a Life-Changing Fortune... So Can YOU!]( [Janitor_Mopping]( Ever heard the story of the Vermont gas station attendant and janitor who also managed to amass a huge fortune? He didn't have a finance degree... and he certainly never made a six-figure salary. Yet over an estimated 65 years, he managed to build a HUGE nest egg - all thanks to what we call "Income for Life" stocks. [Click here to keep reading...]( Rebounding Cash Flow Gilead's cash flow has shriveled in the past few years. This year's free cash flow will be half of what it was in 2016. SafetyNet Pro does not look kindly on declining cash flow. What Is SafetyNet Pro?SafetyNet Pro is a groundbreaking tool that predicts dividend cuts with stunning accuracy. With it, you can determine the dividend safety rating of nearly 1,000 stocks. Access to SafetyNet Pro is reserved exclusively for subscribers of Marc's newsletter, The Oxford Income Letter. [Chart - Gilead Sciences' Free Cash Flow]( Cash flow is expected to dip lower again this year when the final numbers are tallied but then rebound strongly in 2021. It still won't come close to where it was in 2016, but a meaningful improvement goes a long way. Even with the low cash flow totals of the past few years, the dividend was in okay shape. The [payout ratio]( in 2020 will come in at around 41%, which is well within my comfort zone. Gilead has a short but solid dividend-paying track record and a nice, low payout ratio. The only knock on the stock from a dividend safety standpoint has been falling cash flow. That puts the stock at moderate risk for a dividend cut. But with free cash flow expected to grow in 2021, it is quite likely that Gilead will be upgraded and its dividend will be considered relatively safe. Dividend Safety Rating: C [Dividend Grade Guide] If you have a stock whose dividend safety you'd like me to analyze, leave the ticker symbol in the [comments]( section. 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