VWEHX, the Vanguard High-Yield Corporate Fund, has been a great to investors since its inception in December 1978. VWEHX has generated 8.41% annual returns durings its thirty-two years in existence, which would turn a $10,000 investment into $146,000 over that time frame. Better yet, VWEHX has been the near perfect bond fund to own if you are after high current over the long run, as $108,000 of those gains would have come from income generated from the bond holdings that would be passed on to you.
Gilead Sciences caught my attention in February when the price of the stock fell to $82 from its 2015 high of $125 per share. I wrote it about it then, likening the anxiety that was dragging down the price of pharmaceuticals to the anxiety that dragged down the price of weapons manufacturers Lockheed Martin and Boeing during the political talks of sequester.
Gilead, whose signature drug is Sovaldi, has come under scrutiny for pricing its Hepatitis C drug at $1,000 a pill or $84,000 for a three-month regimen. France, Spain, and India have threatened to invalidate Gilead’s patents for Hepatitis C, and the Veterans Administration in the United States has sought to add political pressure to Gilead’s American operations by using media pressure and the threat of congressional regulation to get Gilead to voluntarily the price of Sovaldi.