NYSE:GSK

GlaxoSmithKline PLC (GSK)

49.35
-0.35 (0.70%)
as of Sep 29, 2026, 8:00:00 pm Market Open.
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COMMENT

They sold their personal care business to generate a lot of capital. They're strong in vaccines, but don't have a strong pipeline of drugs. So, they need to buy other companies to make up for that. Not a high PE and pays a good dividend. The key is what they will do with their capital.

RISKY

Great dividend yield of 6.3%, trades at only 10x earnings. Cheap, you can own it here. Grew vaccine business. New CEO shed some divisions, so now more of a pure pharma company, which has risks. Have to worry about pipeline constantly. JNJ, for example, is more diversified, and that's what he prefers.

DON'T BUY

It's been successfully recently, but they have to pay for their drug pipeline which looks reasonable. Not cheap, but no drug is coming to market that will do very well. So-so overall. There are better peers.

PAST TOP PICK
(A Top Pick Mar 04/20, Down 9%)

Still likes it. They spun off over-the counter and consumer pharmaceuticals like Advil and that's when shares dipped (last fall). He chose it back then to bet on Covid vaccines, but that didn't pan out. But he likes it for that spin off and you get paid a reasonable dividend.

DON'T BUY
Not expensive, 10x earnings. Be careful with pharma, look at the pipeline. Focusing on one area, and that's the risk. Volatility as drugs come off patent. Lots of restructuring. He owns JNJ instead with its 3 businesses. Yield over 5%.
Unspecified
It has re-structured and is selling off some of its personal care business, thereby concentrating more on the pharmaceutical side. Not expensive and has a dividend yield over 6%.
BUY
They're spinning off their consumer products division, so GSK has historically traded at a discount with slower growth than other drugmakers. New management has turned around the pharmaceuticals side and make good consumer products. Aging populations in the west is a tailwind.
DON'T BUY
Large pharmaceutical company. Business model challenging since large investment required to produce new products. Good company, but owns other names in the space.
BUY
Options trading He jumped on some options. He likes healthcare and is adding to the sector. he doing call buying with Glaxo, not stock buying. There's a lot of activity here.
BUY
In 2018, they planned to merge their consumer health business with Pfizer's consumer to create a powerhouse, and planned to spin off this unit in three years. Last summer they offered an update--everyone expects a big cut to their 5% dividend yield, but cut it by only 31%. Management also offered encouraging sales projections. A hedge fund wants to bring in new leadership; he's unsure of this, but these types of move tend to prod management to deliver for shareholders, which is another reason to like this. He sees 10% upside.
BUY
Pays a 5% yield. It's doing okay. Okay to own for income.
DON'T BUY
A tough sector. Low growth, low PE, high dividend, pricing issues. Whole sector is struggling to come up with new drugs. Activist investor is probably pushing to break up the company; not good for long-term shareholders, though the share price would pop. Yield is about 6%.
COMMENT
The yield isn't safe. He truly wants GSK to do well and hopes their new vaccine with Sanopi works. Right now, GSK stock is up because of activists. Otherwise, shares will head down. He's less a fan of this now. Be prepared to take money off the table if the vaccine doesn't pan out.
BUY

Pharma has really not participated in rallies. In the last couple days, we have started to see some movement, like Pfizer. It is an area that will eventually be discovered. There is decent growth, nice dividends, but it lacks excitement. Nice to have one or two. It could be one of them.

HOLD
A big disappointment. He had hoped GSK could collaborate with another company on a vaccine, but he's been wrong. Sorry. Don't sell it with its 7% yield, but don't buy.
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