GlaxoSmithKline
GSK
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 an 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 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.
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
Shareholder distributions are generally paid in the months of January, April, July & October each year.
As the file below shows, initially we started out holding 330 shares in 2015, but decided to take a little profits in 2016 which reduced my holdings from 330 to 100 shares.
Since the GSK demerger the holdings has reduced to just 80 GSK shares however we gained an additional 100 Haleon Shares.
There is still an investment case in continuing to hold GSK as it’s a solid business, therefore the stock will remain within the SIPP portfolio for the foreseeable future.
Quarterly dividend income has been received since 2015.
Overall GSK has generated a total income of £898.20 with all income being reinvested back into the portfolio.
P/E is currently 8.45 (10/04/2025)
Dividend yield is 4.63% (10/04/2025)
Further dividend analysis can be viewed in the file below:
Disclaimer:
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