GSK
Website:
GSK
Index:
FTSE 100
EPIC: GSK
Supersector:
Health Care
Sector:
Pharmaceuticals and Biotechnology
Subsector:
Pharmaceuticals
Market Cap:
£77.48B
Payout Frequency: Quarterly
GSK Dividend Analysis and Summary
Declared dividend and key dates
- Declared Q1 2026 interim dividend: 17p per share
- Ex-dividend date (Ordinary shares): 14/05/2026
- Record date: 15/05/2026
- Payment date: 09/07/2026
- Guided full-year 2026 dividend: 70p per share (vs 66p in 2025)
- Dividend policy: progressive, guided by a 40–60% payout ratio through the cycle
- DRIP: last date for elections 18/06/2026
- (ADR reference: ex-div 15/05/2026)
Context and recent performance
- Q1 2026 Core EPS: 46.5p; Total EPS: 43.2p
- Free cash flow (Q1): £815m; Cash generated from operations: £1.35bn
- Net debt at 31 Mar 2026: £15.6bn (up from £14.5bn at YE 2025)
- Share buyback: £1.7bn executed to date out of a £2bn programme (completing by end Q2 2026)
Dividend outlook and trajectory
- Board reaffirms dividend framework; Q1 declared at 17p is consistent with full-year guidance of 70p, implying c. +6% y/y growth vs 2025’s 66p.
- With Core EPS growth guided at +7–9% for 2026 and a 40–60% payout policy, the indicated 70p appears appropriately covered.
Analysis: sustainability and coverage
- Earnings coverage: Q1 dividend (17p) vs Core EPS (46.5p) implies c. 37% payout in the quarter, inside policy parameters; full-year payout at 70p should remain within the 40–60% band if guidance is met.
- Cash coverage: Q1 free cash flow of £815m comfortably supports shareholder returns (shareholder dividends paid in Q1: £643m), albeit note timing effects and seasonality.
- Capital allocation: Management balances a progressive dividend with R&D acceleration and selected M&A. The ongoing £2bn buyback reduces share count, supporting per-share metrics and dividend sustainability.
- Balance sheet: Net debt rose to £15.6bn, reflecting acquisitions, buybacks and dividends, partly offset by FCF and asset disposals. Current leverage is manageable given robust specialty portfolio growth and reaffirmed guidance, but bears monitoring.
Structural or strategic items with potential dividend impact
- M&A: Completed acquisition of RAPT Therapeutics (~$2.3bn total; ~$1.9bn net cash) in Q1; post quarter-end acquired 35Pharma ($950m). Near-term cash outflows and integration spend, but aimed at enhancing medium-term growth and cash generation.
- ViiV Healthcare restructure: Pfizer exited; Shionogi increased stake to 21.7%; GSK received a special dividend of $250m (£187m). GSK continues to consolidate ViiV results; ongoing contingent consideration to Shionogi remains a significant cash item.
- Buyback: £1.7bn executed toward the £2bn programme (to end Q2 2026), supporting EPS and DPS; the buyback tailwind moderates once completed.
- Tariff/US policy: Agreement with the US Government provides Section 232 tariff relief through 20 Jan 2029 (subject to final implementation). Guidance includes the expected impact.
- Asset disposals: Sale of Rockville facility contributed other income and cash; non-recurring.
Risks and flags for dividend stability
- Contingent consideration cash outflows: Payments to Shionogi were £362m in Q1; the liability totals £5.36bn, representing ongoing quarterly cash demands that compete with other uses.
- R&D and launch spend: Management reiterates R&D will grow ahead of sales in 2026 to support the pipeline (e.g., oncology ADCs, HBV, MASH). While value-accretive, it weighs on near-term FCF.
- Leverage and FX: Net debt increased with M&A and buybacks; FX is a headwind to reported AER results. Sustained operational momentum is key to maintain coverage.
- Portfolio mix/competition: General Medicines face erosion; Arexvy shows seasonality; continued delivery from Specialty (HIV, Oncology, Benlysta/Nucala, Shingrix) is essential.
- Regulatory/policy execution: US tariff relief depends on programme participation; changes could affect margins/FCF.
Read more
GSK Annual Dividend Yield - 2.68%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 13/11/2025 |
08/01/2026 |
Q3 |
16.0000p |
GBX |
| 19/02/2026 |
09/04/2026 |
Q4 |
18.0000p |
GBX |
| 14/05/2026 |
09/07/2026 |
Q1 |
17.0000p |
GBX |
Total (Annual Dividends Per Share):
51.00p
Dividend Yield =
Annual Dividends Per Share (51.00p)
÷ Share Price (1903.5p)
= 2.68%
GSK Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 14/05/2026 |
09/07/2026 |
Q1 |
17.0000p |
GBX |
| 19/02/2026 |
09/04/2026 |
Q4 |
18.0000p |
GBX |
| 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) |
8.06%
|
| Dividend CAGR (5Y) |
-7.7%
|
| Years of Growth |
2
|
| Payout Ratio |
44.52%
|
| Buyback Yield |
1.13%
|
| Shareholder Yield |
4.84%
|
| P/E Ratio (TTM) | 13.65 |
|---|
| Forward P/E | 10.61 |
|---|
| P/FCF | 12.13 |
|---|
| Earnings Yield | 7.53% |
|---|
| FCF Yield | 8.24% |
|---|
| ROE | 40.91% |
|---|
| ROCE | 24.49% |
|---|
| Profit Margin | 17.78% |
|---|
| Operating Margin | 30.22% |
|---|
| Gross Margin | 72.87% |
|---|