Daily Stock Analysis: GSK

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Photo by Maxim Hopman on Unsplash

GSK plc bears the ticker symbol GSK, and this is my second mention of GSK for this new Viking Portfolio.  I previously mentioned GSK on November 15 and I have even selected it for inclusion in some of my previous seven dog of the week folios.

In the pharmaceutical industry, GSK ranks as one of the largest firms by total sales. The company wields its might across several therapeutic classes, including respiratory, cancer, and antiviral, as well as vaccines. GSK uses joint ventures to gain additional scale in certain markets like HIV.

The company was formerly known as GlaxoSmithKline plc and changed its name to GSK plc in May 2022.

GSK plc was founded in 1715 and is based in Brentford, the United Kingdom.

Three key data points gauge GSK or any dividend-paying firm:

(1) Price

(2) Dividends

(3) Returns

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

GSK Price

GSK plc price per share was $33.81 at Thursday’s market close. In the past year, GSK's share price fell $18.82 or about 35.75%.

If GSK stock trades in the range of $25.00 to $55.00 this next year, its recent $33.81 share price might reach $39.00 by next year. That upside estimate of $5.19 is based on a little over half the median of price targets from 5 analysts tracking GSK for brokers.

GSK Dividend

GSK plc most recent annual dividend of $1.48 casts a forward annual yield of 4.38%.

GSK Returns

Adding the $1.48 annual estimated GSK dividend to (about half the median of 1 yr price estimates from 5 analysts) that is a $5.19 one-year price upside estimate, reveals a $6.67 potential gross gain estimate per share.

At Thursday’s $33.81 closing price, a little over $1000 would buy 30 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.33 per share.

Subtracting that maybe $0.33 brokerage cost from my estimated $7.67 gross gain makes a net gain of $6.34 X 30 shares = $190.20 for a 19% net gain including the 4.38% annual dividend yield.

In the next year, our $1K investment in shares of GSK plc should generate $43.80 in cash dividends. Furthermore, a single share of GSK at Thursday’s $33.81 price is exactly $9.99 less than the estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to buy GSK shares, based on their dividends for 2023. The current dividend from $1K invested is $9.99 greater than the GSK plc single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of GSK plc. Only time and money invested in this stock will determine its future market value

More By This Author:

Daily Stock Analysis: Roche Holding AG
Stock Analysis: Pfizer
Stock Analysis: LTC Properties

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 ...

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