GlaxoSmithKline (FTSE: GSK) stock and Dividend analysis
GSK Business Overview and Global Sector Reach
Glaxosmithkline (Ticker: FTSE 100 – GSK) is a British multinational pharmaceutical company. Formed in 2000 by a merger between Glaxo Wellcome & SmithKline & Beecham. The business is a global player with annual sales of £31.4 billion in 2024.
Annual profits are around £9.1 Billion, with adjusted EPS of £1.593 per share.
There were several reasons for selecting this particular equity from the outset of my investing days back in 2014/15:
1, GSK is constituent of the FTSE 100 and is an internationally recognised and respected business.
2, Regular quarterly dividend have been paid 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, With over 300 years of Research & Development to boast it is a well established business.
4, It’s a global pharmaceuticals business with a worldwide reach and £31.4 Billion (31/12/24) revenues to match, with growth of 3-5% projected for 2025.
5, The portfolio 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, In recent years GSK has been extending its (R&D) research & development into new fields like Oncology, Immuno-inflamation and human Genetics seeking new medicines and therapies.
7, As it is not too heavily reliant on any one market for revenues, GSK could form part of a diversified stock portfolio and revenues are generated globally.
8, Core profits for 2024 GSK finished £9.1 Billion or plus 4%, with projected 6-8% growth for 2025
9, Full year EPS was + £1.593 pence per share.
10, Businesses with strong management teams and leaders like Emma Walmsley provide confidence within the investment markets.
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 average 5-year share price history and target buy range
GlaxoSmithKline average share price over the last five years (08/2020 to 01/2026)sits between:
The lowest point being £11.90 on 26/02/2021.
To the highest of £19.06 on the 17/01/2020.
Using our 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) we would further add stock at a price range between £13.25 to £13.95 per share.
An ideal exit strategy would be to sell in 10/15 years between £18.00 to £28.95.
In order to be selling the stock over the £20.00 price target would depend on the success of new drugs & therapies pipelines stretching between now and 2030.
GSK Dividend History, Yield and payout sustainability
Shareholder distributions are generally paid in the months of January, April, July & October each year.
In the file below we can initially see that we started out holding 330 shares, however in 2016 we decided to take advantage of some share price appreciation and took a little profit, this reduced the holdings from 330 to 100 shares.
Since the GlaxoSmithKline demerger the holdings had been reduced to just 80 GSK shares however we did gain an additional 100 shares in the newly listed Haleon stock. During late summer 2025 we doubled the share holding, increasing the current position to 160 shares, as the cost per share was at an extremely attractive valuation.
We still see an investment case and continue to hold and increase the GSK stock as it is a solid business, therefore the stock will remain within the SIPP portfolio for the foreseeable future.
Quarterly dividend income has been received since 2015 and overall GSK has generated a total income of £1,017.20, with all income being reinvested back into the portfolio.
GSK Current dividend yield and P/E Valuation Metrics
P/E is currently 10.19 (08/10/2026)
Dividend yield is 3.63% (08/10/2026)
Further dividend income analysis can be viewed in the file below:
Portfolio Performance: Return on Shares Held over 10 Years
Important Disclaimer:
The content on this website is published solely for educational, research, and informational purposes and reflects personal opinion and portfolio tracking. It does not constitute personal financial, investment, or tax advice, nor is it an offer or solicitation to buy or sell any security.
The value of investments and the income derived from them can fall as well as rise, and you may not recover the full amount originally invested. Past performance and dividend yields are not reliable indicators of future results.
If you are uncertain about the suitability of any investment mentioned, please consult an independent financial adviser authorised and regulated by the Financial Conduct Authority (FCA).
