Daily Stock Pick: GlaxoSmithKline

A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the fourth of five healthcare sector stocks poised to join my Volio folio this week. This could be my thirty-seventh pick for Volio!

That healthcare sector includes ten industries all related to testing, diagnosing, and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; healthcare facilities; medical care; medical devices; medical distribution; medical supplies.

My subject today is a drug manufacturer general - named, GlaxoSmithKline PLC. Its trading ticker symbol is GSK. This is my first-ever report for GlaxoSmithKline PLC.

In the pharmaceutical industry, GlaxoSmithKline ranks as one of the largest companies 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; Merck KGaA; Lyell Immunopharma; CEPI; Innovax and Xiamen University; VBI; and Viome.

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

I use three key data points to gauge dividend equities or funds like GlaxoSmithKline PLC:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

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

GSK Price

Glaxo's price per share closed at $42.90 yesterday. A year ago their price was $39.21. Market price increased $3.69 or just over 9% in the past year.

Assuming Glaxo's stock trades in the range of $20 to $50 this next year, its recent $42.90 price might rise by $2.10 to reach $45.00 by May 14, 2021.

GSK Dividends

Glaxo's most recent declared quarterly dividend was $0.472 payable July 9th. That $0.472 Q dividend equates to $1.89 annually and yields 4.40% at yesterday's $42.90 share price.

GSK Gains?

Adding the $1.89 annual estimated dividend to my $2.10 optimistic estimate of Glaxo's price upside shows a $3.99 potential gross gain, per share, reduced by any costs to trade those shares.

A little under $1,000.00 invested today in GlaxoSmithKline PLC  shares at their $42.90 price, buys 23 shares of GSK stock.

A $10 broker fee paid half at purchase and half at sale could cost about $0.43 per share.

Subtract that $0.43  brokerage cost from my estimated $3.99 gross gain per share results in a net gain of $3.56 X 23 shares = $81.88 for an 8.2% net gain on a $986.70 investment.

GlaxoSmithKline PLC shows a possible 8.2% net gain including a 4.4% dividend yield. It could be more, it could be less.

The above speculation is based on past performance and supposition. Only time and money invested will tell if GlaxoSmithKline PLC is worth it.

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 solicitation, ...

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