GlaxoSmithKline: This 5% Yielder Is Looking Resurgent
By Bret Jensen:GlaxoSmithKline (GSK) has done a solid job managing patent expirations, instituting a large restructuring program and surviving the debacle known as Avandia. Although shares have performed strongly over the last six months, with its 5% yield and rising earnings, it should be considered for purchase by income orientated investors.7 Reasons Glaxo is a solid pick for income investors at $45 a share.:
- Earnings are showing solid growth. It made $3.31 a share in FY2011. Analysts project it will make $3.76 in FY2012 and $4.30 in FY2013.
- It has a robust yield of over 5%. Given its projected earnings increases, dividend payments should begin to increase in line with earnings growth.
- Consensus earnings estimates for FY2012 and FY2013 have dramatically increased over the last three months.
- The mean analysts' price target on