GSK
Website:
GSK
Index:
FTSE 100
EPIC: GSK
Supersector:
Health Care
Sector:
Pharmaceuticals and Biotechnology
Subsector:
Pharmaceuticals
Market Cap:
£74.38B
Payout Frequency: Quarterly
GSK Dividend Analysis and Summary
Key Dividend Details
- Q3 2025 dividend: 16p per share (third interim)
- Ex-dividend date (Ordinary shares): 13/11/2025
- Record date: 14/11/2025
- Payment date: 08/01/2026
- ADR ex-dividend date: 14/11/2025
- DRIP election deadline: 15/12/2025
- FY 2025 dividend guidance: 64p per share (policy unchanged; guided by a 40–60% payout ratio)
- FY 2024 total dividend: 61p (15p/15p/15p/16p) ? implied growth of ~+5% in 2025
- Share buyback: £2bn programme to end Q2 2026; £1.1bn spent YTD 2025 (79m shares repurchased)
Dividend Sustainability and Coverage
- Cash coverage: Q3 free cash flow (FCF) £1.25bn vs. Q3 dividend cash cost ~£644m (~1.9x cover). YTD FCF £3.07bn vs. YTD dividends paid £1.92bn (~1.6x cover).
- Earnings support: Upgraded 2025 guidance: Core EPS growth +10–12% (CER); payout policy 40–60% provides headroom versus expected EPS.
- Balance sheet and obligations: Net debt £14.4bn (up £1.35bn YTD) reflecting M&A, dividends and buybacks; contingent consideration liabilities £6.78bn with ~£1.1bn due within a year (primarily Shionogi/ViiV). Zantac-related cash outflows in 2025 (e.g., £565m in Q3) are manageable within current cash generation.
- Operating momentum: Strong Specialty Medicines and Oncology growth; Core operating profit +9–11% guided (CER); FCF conversion 60% YTD. Overall supports a progressive dividend at 64p.
Dividend Growth Trajectory
- FY 2025 expected dividend of 64p (+~5% YoY) aligns with “progressive” policy.
- Buyback expected to add up to ~1% to Core EPS in 2025, indirectly supporting per-share dividend capacity.
Capital Allocation Context
- Parallel commitments to dividends (64p), buybacks (£2bn), and pipeline/R&D plus targeted M&A (IDRx, efimosfermin) indicate confidence in cash generation but increase near-term funding needs.
- Royalty income uplift and disciplined SG&A aid margins; ongoing reinvestment in Oncology/Vaccines supports medium-term earnings and dividend sustainability.
Structural/Policy Items That Could Impact Future Dividends
- No structural changes (demerger or consolidation) announced; continued £2bn buyback is accretive to per-share metrics.
- CEO transition noted; dividend policy unchanged.
- Targeted acquisitions (IDRx; efimosfermin) are pre-revenue and may be near-term FCF drags but are intended to enhance medium/long-term growth.
Key Risks/Flags to Dividend Stability
- Cash obligations: High recurring contingent consideration payments (e.g., Shionogi/ViiV; £956m paid YTD) and remaining Zantac cash settlements.
- US pricing/volume headwinds: IRA Medicare Part D redesign and US Vaccines demand challenges could temper growth; guidance already factors these risks.
- Tariff risk: Potential US/EU pharma tariffs under Section 232; company has mitigation plans, but could pressure margins/FCF.
- Leverage drift: Net debt up to £14.4bn; continued buybacks/M&A should be balanced against maintaining coverage and investment-grade metrics.
Bottom Line
- The 16p Q3 dividend (ex-div 13 Nov 2025) and 64p FY target appear well covered by earnings and FCF, supported by upgraded guidance and a strong Specialty/Vaccines franchise. Key watchpoints are cash obligations (ViiV contingent payments, legal settlements), US pricing/tariff risks, and disciplined pacing of buybacks versus leverage.
Read more
GSK Annual Dividend Yield - 3.44%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 14/11/2024 |
09/01/2025 |
Q3 |
15.00p |
GBX |
| 20/02/2025 |
10/04/2025 |
Q4 |
16.00p |
GBX |
| 15/05/2025 |
10/07/2025 |
Q1 |
16.00p |
GBX |
| 14/08/2025 |
09/10/2025 |
Q2 |
16.00p |
GBX |
Total (Annual Dividends Per Share):
63.00p
Dividend Yield =
Annual Dividends Per Share (63.00p)
÷ Share Price (1833.5p)
= 3.44%
GSK Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 13/11/2025 |
08/01/2026 |
Q3 |
16.0000p |
GBX |
| 14/08/2025 |
09/10/2025 |
Q2 |
16.00p |
GBX |
| 15/05/2025 |
10/07/2025 |
Q1 |
16.00p |
GBX |
| 20/02/2025 |
10/04/2025 |
Q4 |
16.00p |
GBX |
| 14/11/2024 |
09/01/2025 |
Q3 |
15.00p |
GBX |
| 15/08/2024 |
10/10/2024 |
Q2 |
15.00p |
GBX |
| 16/05/2024 |
11/07/2024 |
Q1 |
15.00p |
GBX |
| 22/02/2024 |
11/04/2024 |
Q4 |
16.00p |
GBX |
| 16/11/2023 |
11/01/2024 |
Q3 |
14.00p |
GBX |
| 17/08/2023 |
12/10/2023 |
Q2 |
14.00p |
GBX |
| 18/05/2023 |
13/07/2023 |
Q1 |
14.00p |
GBX |
| 23/02/2023 |
13/04/2023 |
Q4 |
13.75p |
GBX |
| 17/11/2022 |
12/01/2023 |
Q3 |
13.75p |
GBX |
| 18/08/2022 |
06/10/2022 |
Q2 |
16.25p |
GBX |
| 19/05/2022 |
01/07/2022 |
Q1 |
14.00p |
GBX |
| 24/02/2022 |
07/04/2022 |
Q4 |
23.00p |
GBX |
| 18/11/2021 |
13/01/2022 |
Q3 |
19.00p |
GBX |
| 19/08/2021 |
07/10/2021 |
Q2 |
19.00p |
GBX |
| 20/05/2021 |
08/07/2021 |
Q1 |
19.00p |
GBX |
| 18/02/2021 |
08/04/2021 |
Q4 |
23.00p |
GBX |
| 12/11/2020 |
14/01/2021 |
Q3 |
19.00p |
GBX |
| 13/08/2020 |
08/10/2020 |
Q2 |
19.00p |
GBX |
| 14/05/2020 |
09/07/2020 |
Q1 |
19.00p |
GBX |
| 20/02/2020 |
09/04/2020 |
Q4 |
23.00p |
GBX |
| 14/11/2019 |
09/01/2020 |
Q3 |
19.00p |
GBX |
| 08/08/2019 |
10/10/2019 |
Q2 |
19.00p |
GBX |
| 16/05/2019 |
11/07/2019 |
Q1 |
19.00p |
GBX |
| 21/02/2019 |
11/04/2019 |
Q4 |
23.00p |
GBX |
| 15/11/2018 |
10/01/2019 |
Q3 |
19.00p |
GBX |
| 09/08/2018 |
11/10/2018 |
Q2 |
19.00p |
GBX |
| 10/05/2018 |
12/07/2018 |
Q1 |
19.00p |
GBX |
| 22/02/2018 |
12/04/2018 |
Q4 |
23.00p |
GBX |
| 09/11/2017 |
11/01/2018 |
Q3 |
19.00p |
GBX |
| 10/08/2017 |
12/10/2017 |
Q2 |
19.00p |
GBX |
| 11/05/2017 |
13/07/2017 |
Q1 |
19.00p |
GBX |
| 23/02/2017 |
13/04/2017 |
Q4 |
23.00p |
GBX |
| 03/11/2016 |
12/01/2017 |
Q3 |
19.00p |
GBX |
| 11/08/2016 |
13/10/2016 |
Q2 |
19.00p |
GBX |
| 12/05/2016 |
14/07/2016 |
Q1 |
19.00p |
GBX |
| 18/02/2016 |
14/04/2016 |
Q4 |
23.00p |
GBX |
| 18/02/2016 |
14/04/2016 |
Special |
20.00p |
GBX |
| 12/11/2015 |
14/01/2016 |
Q3 |
19.00p |
GBX |
| 13/08/2015 |
01/10/2015 |
Q2 |
19.00p |
GBX |
| 14/05/2015 |
09/07/2015 |
Q1 |
19.00p |
GBX |
| 19/02/2015 |
09/04/2015 |
Q4 |
23.00p |
GBX |
| 06/11/2014 |
08/01/2015 |
Q3 |
19.00p |
GBX |
| 06/08/2014 |
02/10/2014 |
Q2 |
19.00p |
GBX |
| 14/05/2014 |
10/07/2014 |
Q1 |
19.00p |
GBX |
| 19/02/2014 |
10/04/2014 |
Q4 |
23.00p |
GBX |
| 13/11/2013 |
09/01/2014 |
Q3 |
19.00p |
GBX |
| 07/08/2013 |
03/10/2013 |
Q2 |
18.00p |
GBX |
| 08/05/2013 |
11/07/2013 |
Q1 |
18.00p |
GBX |
| Year |
Special |
Currency |
Total |
Change |
| 2024 |
|
GBX |
61.000 |
9.410 |
| 2023 |
|
GBX |
55.750 |
-16.790 |
| 2022 |
|
GBX |
67.000 |
-16.250 |
| 2021 |
|
GBX |
80.000 |
0.000 |
| 2020 |
|
GBX |
80.000 |
0.000 |
| 2019 |
|
GBX |
80.000 |
0.000 |
| 2018 |
|
GBX |
80.000 |
0.000 |
| 2017 |
|
GBX |
80.000 |
-20.000 |
| 2016 |
20.000 |
GBX |
100.000 |
25.000 |
| 2015 |
|
GBX |
80.000 |
0.000 |
| 2014 |
|
GBX |
80.000 |
45.450 |
| 2013 |
|
GBX |
55.000 |
|
GSK Dividend Calculator
GSK Dividend Growth
| Dividend Growth (1Y) |
4.92%
|
| Dividend CAGR (5Y) |
-8.54%
|
| Years of Growth |
1
|
| Payout Ratio |
46.05%
|
| Buyback Yield |
-0.08%
|
| Shareholder Yield |
3.26%
|
| P/E Ratio (TTM) | 13.73 |
|---|
| Forward P/E | 10.18 |
|---|
| P/FCF | 11.32 |
|---|
| Earnings Yield | 7.5% |
|---|
| FCF Yield | 8.84% |
|---|
| ROE | 41.52% |
|---|
| ROCE | 17.02% |
|---|
| Profit Margin | 17.08% |
|---|
| Operating Margin | 21.17% |
|---|
| Gross Margin | 72.43% |
|---|