Daily Stock Analysis: GlaxoSmithKline (GSK)

A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista. I will select its fifth stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we'll review the second of five healthcare sector stock candidates vying to be the fifth selection for the Vista portfolio.

My subject today is a large-cap drug manufacturer general, GlaxoSmithKline PLC. Its trading ticker symbol is GSK. This is my first report on GlaxoSmithKline PLC for this Vista dog of the week portfolio. I have reviewed it for my other portfolios, however.  

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.

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

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

GSK Price

Glaxo's price per share closed at $36.83 yesterday. A year ago its price was $42.20. Price fell $5.37 or just about 12.73% last year.

If Glaxo's stock trades in the range of $30 to $50 this next year, its recent $36.83 price might rise by $8.17 to reach $45.00 by October 7, 2021. 

GSK Dividends

Glaxo's most recently declared quarterly dividend was $0.472 paid July 9th. Dividends are estimated to total $1.89 per share annually and yield 5.13% at yesterday's $36.83 closing price.

GSK Gains?

Adding the $1.89 annual anticipated dividend to my $8.17 optimistic estimate of GSK's price upside shows a $10.06 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little under $1,000.00 today in GlaxoSmithKline at $36.83, we would buy 27 shares of GSK stock.

A $10 broker fee paid half at purchase and half at sale could cost us $0.37 per share.

Subtract that $0.37 brokerage cost from my estimated $10.06 gross gain per share results in a net gain of $9.69 X 27 shares = $261.63 for a 26.16% net gain on a $994.41 investment.

So it goes that GlaxoSmithKline PLC shows a possible 26.16% net gain including a 5.13% dividend yield. It could be more, it could be less.    

All of the estimates above are speculation based on the past history of GlaxoSmithKline PLC. Only time and money invested in this stock will determine its worth.

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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