Daily Report: GlaxoSmithKline (GSK)

GlaxoSmithKline PLC, known by the ticker symbol GSK, is a diversified insurance firm in the Financial Services Sector. This is my first report on GSK for my Viital stock portfolio, However I last reported on GSK on December 11, 2020 when I selected it for my Vista portfolio.

In the pharmaceutical industry, GlaxoSmithKline ranks as one of the largest firms by total sales. The company wields its might across several therapeutic classes, including respiratory, oncology, and antiviral, as well as vaccines and consumer healthcare products. Glaxo uses joint ventures to gain additional scale in certain markets like HIV and consumer products.

It has collaboration agreements with 23andMe; Lyell Immunopharma, Inc.; Novartis; Sanofi SA; Surface Oncology; Progentec Diagnostics, Inc.; Alector, Inc.; and CureVac AG., as well as strategic partnership with IDEAYA Biosciences, Inc. and Vir Biotechnology, Inc. 

GlaxoSmithKline plc was founded in 1715 and is headquartered in Brentford, the United Kingdom.

Three key data points gauge dividend equities or funds like GlaxoSmithKline (GSK): (1) Price (2) Dividends (3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

GSK Price

GlaxoSmithKline's price per share was $38.71 as of Friday's market close. One year ago its price was $37.57 So GSK's share price increased about 3% in the past year.

If GSK's stock trades in the range of $32.00 to $44.00 this next year, its recent $38.71 price might rise by $4.29 to reach $43,99 by October 11, 2022. My estimate is $0.29 under with the median of annual price upsides calculated by 6 brokerage analysts tracking the stock.

GSK Dividends

GlaxoSmithKline's most recent variable quarterly dividend of  $0.53 paid out last Thursday October 7 to shareholders. That quarterly payout of $0.53 equates to $2.12 annually and yields 5.48% based on Friday's $38.71 closing price. GlaxoSmithKline PLC has paid regular but variable dividends since December, 1985. That's 36 years.

GSK Returns

Adding the $2.12 annual GlaxoSmithKline forward-looking dividend to my $4.29 price upside estimate shows a $6.41 potential gross gain, per share, to be reduced by any costs to trade GSK shares.  

At Friday's $38.71 price per share, a little over $1000 would buy 26 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.38 per share.

Subtract that maybe $0.38 brokerage cost from my estimated $6.41 gross gain per share results in a net gain of $6.03 X 26 shares = $156.78 for a 15.67% net gain on a $1,006.46 investment.

So it is that GlaxoSmithKline shows a possible 15.67% net gain including a 5.48% forward estimated dividend yield. 

Over the next year at this time a $1000 investment in GlaxoSmithKline could generate $54.80 in cash dividends alone. And a single share bought at yesterday's closing price was $38.71! Thus, GSK's share price is $16.09 less than the dividend income from $1K invested. So, according to my dogcatcher ideal, now is the time to pickup GSK shares. The dividend from $1k invested is 16.09 greater  than the single share price. Consider yourself alerted. Its a sign!

All of the estimates above are speculation based on the past history of GlaxoSmithKline (GSK). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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