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GSK’s Dividend Yield Trends and Analysts’ Recommendations

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Dividend yields

In July, GlaxoSmithKline (GSK) announced a cash dividend of $0.50 per share for the third quarter. GlaxoSmithKline expects to pay a cash dividend of $0.50 on October 11 to shareholders of record on August 3.

GlaxoSmithKline’s dividend witnessed a slight decline over the years. GlaxoSmithKline delivered a dividend of $0.57 per share in the third quarter of 2015, which gradually declined to $0.50 per share in the third quarter of 2018. In the third quarter of 2017, GlaxoSmithKline delivered a dividend of $0.50.

Wall Street analysts expect GlaxoSmithKline to deliver a dividend of $0.49 in November. Analysts also expect GlaxoSmithKline to deliver a dividend of $0.59 in the first quarter of 2019.

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Stock performance

On September 26, GlaxoSmithKline (GSK) stock closed at $40.53, which is up ~0.42% from its close of $40.36 on September 25. GlaxoSmithKline stock opened at $36.13 on January 2 and reached $40.53 on September 24, which represents ~12.0% YTD (year-to-date) growth.

On September 26, GlaxoSmithKline stock closed at $40.53, which represents ~17.0% growth from its 52-week low of $34.52 on December 6, 2017. On June 14, GlaxoSmithKline hit its 52-week high of $42.36.

GSK sales performance

GlaxoSmithKline’s (GSK) Vaccine segment pushed the company’s revenue growth in the second quarter. During the quarter, GlaxoSmithKline’s Vaccine segment reported revenues of 1.2 billion British pounds, which represents ~13.0% year-over-year (or YoY) growth.

However, GlaxoSmithKline’s Pharmaceuticals and Consumer Healthcare segments generated revenues of 4.2 billion British pounds and 1.8 billion British pounds, respectively, reflecting declines of ~3.0% and ~1.0% YoY.

In the first half, GlaxoSmithKline’s Pharmaceuticals, Vaccines, and Consumer Healthcare businesses generated revenues of 8.2 billion British pounds, 2.5 billion British pounds, and 3.8 billion British pounds, respectively.

GlaxoSmithKline’s strong growth of its shingles vaccine primarily pushed the revenue growth of the Vaccine segment.

Analysts’ recommendations

Of the five analysts tracking GlaxoSmithKline (GSK) stock in September, one recommended a “strong buy” and four recommended a “hold” rating. On September 25, GlaxoSmithKline had a consensus 12-month target price of $43.06. This represents an ~7.1% return on investment over the next 12 months.

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