Analysis – GlaxoSmithKline Plc Increases Dividend by 22%

GSK

GlaxoSmithKline Plc announced a regular quarterly dividend of $0.669, a 22 percent increase from the prior rate of $0.549 per share. The dividend will be paid at the new higher rate on April 14, 2016, to shareholders of record at close of business on February 19, 2016. GlaxoSmithKline Plc is a member of the Top 100 dividend growth candidates.

Date Quarterly Dividend
2/19/2016 0.669
11/10/2015 0.582
8/12/2015 0.593
5/13/2015 0.577
2/18/2015 0.695
11/5/2014 0.613
8/6/2014 0.648
5/14/2014 0.64
2/19/2014 0.75
11/13/2013 0.616
8/7/2013 0.553
5/8/2013 0.55
2/20/2013 0.689
11/14/2012 0.579
8/8/2012 0.528
5/9/2012 0.549
2/15/2012 0.821
11/2/2011 0.543
8/3/2011 0.521
5/4/2011 0.526
2/9/2011 0.615
10/27/2010 0.507
7/28/2010 0.457
5/5/2010 0.46
2/10/2010 0.574
8/25/2010 0.15
6/2/2010 0.15
3/31/2010 1
2/24/2010 0.15

Analysis of Valuation of GlaxoSmithKline Plc (Symbol GSK).

GlaxoSmithKline is trading below its average price/sale (P/S) range.  GlaxoSmithKline is trading toward the top of its average historical dividend yield. 

Price 2/8/16 % Yield 5 Year Div. Growth Rate  SPS    2016 P/S Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$39.47 6.57% 1.5% 15.65 2.63 1.59 5.93 6.58% 4.38%

GlaxoSmithKline Plc Dividend Yield Chart (Click to enlarge) GSK2

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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