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GlaxoSmithKline: A FTSE 100 Dividend-Raising Star

Kevin Godbold
November 14, 2012

LONDON -- In an outcome that's tough on investors, the FTSE 100 has failed to deliver a rising dividend payout over the last few years.

Just look at the iShares FTSE 100 ETF, for example. This is an exchange-traded fund that tracks the benchmark index, and we can see the aggregate payment from Britain's top 100 companies has yet to regain its pre-recession peak:

Year 2007 2008 2009 2010 2011
Dividend per share (in pence) 19.1 20.2 17.1 16.2 18.1

But some companies within London's premier index have performed well on dividends, despite these austere times, and this series aims to seek them out. One such name is GlaxoSmithKline (LSE: GSK.L  ) (NYSE: GSK  ) .

The big question is can the company's dividend continue to outperform its index. Let's take a closer look.

GlaxoSmithKline is one of the world's largest pharmaceutical companies. With the shares at 1347 pence, the market cap is 66,346 million pounds. This table summarizes the firm's recent financial record:

Year 2007 2008 2009 2010 2011
Revenue (in millions of pounds) 22,716 24,352 28,368 28,392 27,387
Net cash from operations (in millions of pounds) 6161 7205 7841 6797 6250
Adjusted earnings per share (in pence) 99.1 104.7 121.2 53.9 114.1
Dividend per share (in pence) 53 57 61 65 70

So, the dividend has increased by 32% during the last five years -- equivalent to a 7.2% compound annual growth rate.

U.K.-based GlaxoSmithKline describes itself as one of the world's leading research-based pharmaceutical and healthcare companies with over 97,000 employees spread across more than 100 countries.

The firm makes prescription and ov