GlaxoSmithKline Raises Dividend to Yield 5.2%

LONDON -- The shares of GlaxoSmithKline (LSE: GSK.L  ) (NYSE: GSK  ) slid 9 pence to 1,411 pence during lunchtime London trade today despite the pharmaceutical group announcing a 6% lift to its quarterly dividend.

Within its third-quarter statement, the FTSE 100 member said core earnings for July, August, and September had come in at 26.5 pence per share, down 13% on last year and matching the group's second-quarter effort. In addition, Glaxo noted the first nine months of the year had seen core earnings drop 5% to 80.2 pence per share.

The company's Q3 earnings performance followed weak trading in Europe and the United States. "Additional austerity measures" caused European sales to contract by 9%, while "genericisation" hit U.S. revenues by 6%. Glaxo's overall top line sank 5% to 6.3 billion pounds during the quarter.

Notably, Glaxo did confirm its Q3 dividend would be 18 pence per share -- up a penny on the 17 pence declared this time last year and during the first and second quarters of 2012. The firm also said share buybacks were still expected to cost between 2 billion and 2.5 billion pounds this year.

Sir Andrew Witty, Glaxo's chief exec, said:

Our focus is to continue to deliver on our strategy to maximise growth opportunities and actively prepare for the roll-out of multiple new products. We remain confident that these new products, combined with our strengthened businesses in emerging markets and consumer healthcare and further execution of our financial strategy, provide GSK with clear opportunities to deliver sustained improvement in long-term financial performance and overall returns to shareholders.

Glaxo's trailing core earnings currently run at 109 pence per share, giving a P/E of 13. Meanwhile, the trailing 73 pence per share dividend supports a yield of 5.2%.

Right now, Glaxo is just one of a number of FTSE large-caps that offers a dividend income well ahead of what you can expect to receive from a standard savings account.

If you are seeking other high-dividend possibilities, the Motley Fool has produced a special free report that could assist your investment decisions.

"8 Popular Dividend Shares Held By Britain's Super Investor" reveals the favorite income stocks held by Neil Woodford -- the City fund manager who has thrashed the FTSE 100 by favoring dividend-paying blue chips. Just click to download Neil Woodford's share ideas today.

Are you looking to profit as a long-term investor? "10 Steps to Making a Million in the Market" is the latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- while it's still free and available.

Further Motley Fool investment opportunities:

Maynard Paton does not own shares of any company mentioned in this article. The Motley Fool has a disclosure policy.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2086138, ~/Articles/ArticleHandler.aspx, 10/24/2016 3:12:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:02 PM
GSK $41.13 Down -0.30 -0.72%
GlaxoSmithKline CAPS Rating: ***