GlaxoSmithKline
GSK
Glaxosmithkline (Ticker: FTSE 100 – GSK) is a British multinational pharmaceutical company. Formed in 2000 by a merger between Glaxo Wellcome & SmithKline & Beecham.
GSK is a global player with an annual turnover of 30.3 billion in 2023.
Annual profits are around £8.8 Billion, with adjusted EPS of £1.55 per share.
There were several reasons for holding this particular equity from the outset of my investing days back in 2014/15:
1, GSK is one of the FTSE 100 constituents and is a well recognised well run mature business.
2, GSK distributes a regular quarterly dividend and has been paying these out for many years, click the link to their official website where you will find quarterly dividend history right back to the first quarter of 2001.
3, GSK is a well established business with over 300 years of R&D.
4, GSK is a global pharmaceuticals business with a worldwide reach and revenues to match. (31/12/23 – £30.3 Billion)
5, GSK is well established in prescription medicines like: Amoxil, Advair,
There are too many to name, click here for a full list: (A comprehensive A-Z list can be found on their web-site).
6, GSK has been extending its (R&D) research and development into new fields like Oncology, Immuno-inflamation and human Genetics seeking new medicines and therapies.
7, GSK could be viewed as part of a diversified stock portfolio as it is not too heavily reliant on any one market for revenues
8, GSK finished (Q2 – 2024) with free cashflow of £0.3 Billion
2022 was a transformational year as the business split into two parts:
1, Consumer Healthcare (over the counter medicines) Haleon plc (HLN)
2, Vaccines Business the existing GSK company.
GSK’s most recent quarterly dividend per share is £0.14 pence payable on the 09/01/2025
GSK average five year share price
GlaxoSmithKline average share price over the last five years (08/2019 to 08/2024)sits between:
The lowest point being £11.90 on 26/02/2021.
To the highest of £18.38 on the 17/01/2020.
Using my own metrics of valuing the stock over a five year period and with the intention of holding on long term basis, (as a value investor) I would further add stock at a price range of between £12.00 to £12.75 per share.
An ideal exit strategy would be to sell in 10/15 years between £18.00 to £28.95.
Obviously selling over the £20.00 price target would depend on the success of the development of new drug & therapies pipelines stretching between now and 2030.
GSK Dividend
As the file below shows, I initially started out holding 330 shares back in 2015 but decided to take a little profits in 2018 which reduced my holdings from 330 to 100 shares.
Since the demerger the GSK holdings has reduced to 80 GSK shares however I gained an additional 100 Haleon Shares.
I still see an investment case in continuing to hold GSK as its a solid business, therefore the stock will remain within the SIPP portfolio for the foreseeable future.
The portfolio has enjoyed the earnings or quarterly dividend income since 2015.
GSK has generated a total income of £884.40 in dividends with all income being reinvested back into the portfolio.
P/E is currently 8.77 (09/01/2025)
Dividend yield is 4.27% (09/01/2025)
Further dividend analysis can be viewed in the file below:
Disclaimer:
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