Glaxosmithkline Dividends - GSK

Glaxosmithkline Dividends - GSK

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Glaxosmithkline Plc GSK London Ordinary Share GB0009252882 ORD 25P
  Price Change Price Change % Stock Price Low Price High Price Open Price Previous Close Last Trade
-20.40 -1.24% 1,630.00 1,630.40 1,655.60 1,647.80 1,650.40 16:35:05
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Industry Sector

Glaxosmithkline GSK Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

ayl30: Is this for anyone who didn't wake up yesterday? Sadly didn't do much for share price
abdullla: This is not an RNS,the GSK share price rise today is only by tracking the Ftse not the vaccine news .
sarkasm: I think the GSK share price could help you retire early Rupert Hargreaves | Sunday, 5th July, 2020 | More on: GSK Cheerful mature couple sitting and managing expenses at home. Image source: Getty Images Of all the 100 different stocks in the FTSE 100, I think the GSK (LSE: GSK) share price has more potential to help you retire early than most. It all comes down to the company’s defensive nature. GSK share price growth Healthcare is one of the world’s most defensive markets. The treatments and products produced by GSK will always be required, and as the population grows, so will demand. But there’s more to GSK that its existing portfolio of drugs and medications. The company also spends billions of pounds every year researching new treatments. These products are designed to combat existing diseases and viruses, as well as new threats. The group is always trying to think of new ways to treat old problems and to address new issues. Management also considers acquisitions regularly. These efforts should help the company maintain its edge in the global pharmaceutical industry, not just in the short term, but in the long run as well. This is the primary reason why the GSK share price could make an excellent buy-and-forget investment. Its products will always be in demand, and demand will only grow over the long run. That means to a certain extent the business runs itself. The company’s consumer pharmaceuticals division is another positive factor. Management is planning to spin off this business in the near term, which could create a windfall for shareholders. A special dividend or shares in the business may be distributed to existing GSK share price holders. Income returns It’s also good news for income seekers. GSK’s defensive business model means that the company has a relatively stable and predictable income stream from operations. This supports an attractive dividend yield on the GSK share price. Indeed, over the past few months, many FTSE 100 businesses have been forced to cut or eliminate their dividends to conserve cash in the coronavirus crisis. GSK is one of the few companies in the index that has not taken this course of action. As a result, at the time of writing the stock supports a dividend yield of 4.9%, above the FTSE 100 average of around 4%. This looks set to continue as the dividend is well covered by earnings per share. The dividend cover stands at 1.5. Retire early All of the above suggests that the GSK share price may be an excellent buy for any investor’s retirement portfolio. Over the long term, earnings per share should grow at least in line with inflation. That implies the company can achieve long-run earnings growth of 3% or more. Coupled with its 4.9% dividend yield, these numbers infer that the stock can produce total returns of 7.9% in the long term. This rate of return is more than enough to help you grow your financial nest egg. According to my calculations, an investment of £200 a month growing at a rate of 7.9% per annum could grow to be worth as much as £300,000 after 30 years. The Motley Fool
zeppo: I invested in GSK, in 2016, picking up a 20p Special Dividend and the promise of 80p per annum dividend for some years ahead. With interest rates so low the 80p dividend is still worthwhile. I would be happy to see it kept at this level for some time: But for the share price to grow there has to be a belief that the dividends will remain affordable and will begin to grow at some future date.
gateside: Monty - a few figures to help you.Even if the share price does not change in next 20 years, if dividends are reinvested with today's yield of 5% an investment of £10000 would turn into £27000.The beauty of compound interest!
poikka: It's an ill wind... "When GSK originally announced the divestment of Horlicks in December 2018 the Company expected gross proceeds from the overall transaction to be approximately £3.1 billion and net proceeds to be approximately £2.4 billion after hedging costs, taxes and other expenses had been settled. With the appreciation of HUL's share price since then, GSK now expects gross proceeds from the divestment to be £3.4 billion and net proceeds from the divestment to be £2.9 billion. This includes the proceeds received on closing of the transaction on 1 April 2020 and the expected proceeds from the sale of our Bangladesh business, which is expected to close later this year"
rikky72: I think the results, whilst impressive, don't really change the more subdued outlook for this year so I'm not really surprised at the share price action. But returning to an earlier question, does anyone know what the demerger will look like when it happens? Will GSK holders get a share in the new entity or just a final, bumped up dividend? I'm in the dark about this but happy for any guidance as it will influence whether I'm in for the long term here.
igoe104: Tezcan Gecgil: GlaxoSmithKline One of my top British shares for April is GlaxoSmithKline (LSE: GSK). I believe it may prove to be a defensive portfolio holding if we find ourselves in a global recession. The company reports revenue by three segments: pharmaceuticals, vaccines, and consumer products. Global demand for most of its products are likely to stay stable despite a potential decline in economic conditions. Year-to-date the stock is down about 20%. While the share price has declined to about 1,415p, GSK’s dividend yield has increased — it currently sits at 5.7%. The group pays dividends quarterly and the shares will go ex-dividend on 14 May. I’d consider buying the dip, especially in a Stocks and Shares ISA. Finally, our readers may be interested to know that the group is working on a potential cure (i.e., vaccine) for the novel coronavirus. Tezcan Gecgil does not own shares in GlaxoSmithKline
zicopele: I am on the sidelines waiting for bargains. You guys appear to be cheerleaders for a financial model.which is inappropriate in times of crisis ie the sudden dislocation of the world economy. GSK sales will fall very heavily and the dividend will be suspended. Tge share price will probably fall, mostly because dividend seekers are dismayed. Why does this make me a plonker? Probably because you suspect this to be the case but cannot crystallise your loss. Even the tobacco companies will reduce payments, if only to be politic.
mj19: Is a Dividend Cut Coming From GlaxoSmithKline plc? (Jim Crumly) Dec 2, 2017 Updated 32 min ago Is a Dividend Cut Coming From GlaxoSmithKline plc?FacebookTwitterEmailPrintSaveOne of the attractions of investing in British drugmaker GlaxoSmithKline plc (NYSE: GSK) is its generous dividend yield, which lately has hovered at just a bit less than 6%. A yield that's so far out of whack with peers in the industry is an indication that the market is discounting trouble ahead. How likely is a dividend cut, and is the recent drop in the stock price a warning or a buying opportunity?GlaxoSmithKline's shares have slumped since early summer, and the biggest concern has been the safety of the dividend. At a July 26 investor event, Glaxo CEO Emma Walmsley and her team stirred up new worries about the dividend when they announced a change in policy coming after 2018. The company is committed to maintaining the current dividend through 2018, but after that, Glaxo will return to its pre-2015 practice of declaring the payout on a quarter-by-quarter basis rather than committing to it in advance.Image source: GlaxoSmithKline plc.After 2018, Glaxo will have a goal to have 1.25 to 1.5 times coverage of dividend payments with free cash flow. That's totally reasonable, and is a financial conservatism that dividend investors love to see. The problem is, despite improving cash flow in recent quarters, the company isn't anywhere near that now.When questioned by analysts, the company admitted that it will probably take several years before free cash flow amounts to 125% to 150% of the current dividend, leaving open the question of whether there will be a dividend cut after 2018. When Glaxo executives refused to rule that out and stated that growth investments will be prioritized over the dividend, the market immediately started assuming a cut was in the offing, bidding down the stock price and therefore driving up the yield.Data from YCHARTS.In 2016, free cash flow amounted to 80% of the dividend payout. Free cash flow is particularly lumpy because of the timing of various payments and inventory builds, but so far in 2017, it's up 29% from last year, and the guidance is that Q4 cash flow will be strong. If the 29% growth holds up for the whole year, 2017 free cash flow would edge up just over 100% of the cash need for the dividend. Assuming 2018 also is a growth year for cash, Glaxo could afford to maintain the dividend without increasing debt and may actually get close to the coverage goal. Maintenance of the current dividend during a transition to the long-term goal is a strong possibility.If free cash flow is above 100% dividend but below the long-term goal of 125% to 150%, will Glaxo cut the dividend? I don't think so. The company hopes to grow into its goal over a period of years, but it recognizes how important the dividend is to its shareholders. If management had any doubt about that, it should have been erased with the 14% decline in the share price since the July event, when the issue moved to front and center.Fast-forward to about a year from now. All things being equal, if Glaxo indicates that it will maintain the current dividend into 2019 and beyond, the shares are likely to rebound the 15% they have fallen since the day before the July investor event. That would be a nice gain for patient investors.But there's one problem with this assumption.Glaxo may go shoppingIn October, Pfizer announced that it was looking into options to spin off or sell its $3.4 billion consumer products business, which includes two of the top 10 global brands, Advil and Centrum. GlaxoSmithKline would be the obvious buyer in such a big deal, having traded assets for the consumer business of Novartis in 2015 to create a joint venture. In the third-quarter conference call, Walmsley, who had led the consumer business before taking the top job earlier this year, confirmed that the company is interested.Analysts immediately expressed concern that any deal to pick up Pfizer's consumer business would jeopardize the dividend. A deal seems very possible, with Walmsley saying the company wanted to build up its consumer business and having declared that investments for long-term business growth will be the highest priority for capital allocation. Even if a deal with Pfizer could be structured in such a way keep the balance sheet intact, it is likely to have some cash requirement. And there is an additional complication, in that part of the deal with Novartis involved granting that company a "put option" to sell its 37.5% stake in the consumer joint venture to GlaxoSmithKline at any time, starting on the third anniversary of that deal, coming up next year. Should Novartis decide to exercise the option, the buyout could be a huge cash requirement for Glaxo.The essential dilemma for GlaxoSmithKline investors is that, as of today, the company can't afford the current dividend. And while it probably has the ability to grow into affording it, there are other competing needs for cash. Even if precious capital isn't spent on bolstering the consumer business, the company wants to be ready for an acquisition opportunity to strengthen its drug pipeline, should one appear.GlaxoSmithKline may be able to navigate these waters without lowering the dividend, but it would probably come at the price of passing up opportunities that would ratchet up growth. With the lack of flexibility and uncertainties that come with Glaxo's shortage of cash, conservative investors would be better off ignoring the high yield and putting new money into dividend payers with stronger finances.
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