GSK
Website:
GSK
Index:
FTSE 100
EPIC: GSK
Supersector:
Health Care
Sector:
Pharmaceuticals and Biotechnology
Subsector:
Pharmaceuticals
Market Cap:
£86.4B
Payout Frequency: Quarterly
GSK Dividend Analysis and Summary
Declared Dividend and Key Dates
- Q4 2025 dividend: 18p per share
- Ex-dividend date (Ordinary shares): 19/02/2026
- Ex-dividend date (ADRs): 20/02/2026
- Record date: 20/02/2026
- Payment date: 09/04/2026
- FY 2025 total dividend: 66p per share (up from 61p in 2024)
- FY 2026 expected dividend: 70p per share
- Dividend policy: progressive, guided by a 40–60% pay-out ratio through the investment cycle
- Ongoing capital returns: £2bn share buyback (to end Q2 2026), with £1.4bn executed to date
Coverage and Cash Flow Support
- Core EPS (2025): 172.0p; FY DPS of 66p is covered ~2.6x by earnings
- Free cash flow (2025): £4.0bn vs £2.56bn dividends paid (c.1.6x cash cover)
- Balance sheet: Net debt £14.5bn; Net debt/Core EBITDA 1.3x (modest leverage)
Outlook for Dividend Growth
- Company reiterates FY 2026 DPS of 70p (implies further growth from 66p)
- 2026 guidance: Core EPS growth +7–9%, supporting dividend progression and coverage
- Mix shift to Specialty Medicines and ongoing buybacks bolster per-share metrics
Structural/Policy Developments Relevant to Dividends
- ViiV Healthcare ownership change (post balance sheet): Pfizer’s 11.7% economic interest to be replaced by Shionogi (Shionogi to 21.7%, GSK unchanged at 78.3%). GSK to receive a $0.25bn special dividend and Pfizer put option liability to be extinguished on completion (expected Q1 2026) — reduces overhang/volatility around that obligation and is supportive for future cash flows.
- Active M&A: IDRx and BP Asset IX acquisitions in 2025; agreement to acquire RAPT (expected close Q1 2026). These increase near-term cash outlays but are manageable given FCF and leverage.
- Ongoing £2bn buyback through Q2 2026 complements the cash dividend and supports capital return consistency.
Risks and Flags for Dividend Stability
- US pricing headwinds: Medicare Part D redesign and the confidential US agreement to lower prescription costs; management’s 2026 guidance includes expected impacts, but margins remain exposed to policy changes.
- ViiV contingent consideration to Shionogi: Cash payments were £1.28bn in 2025 and are ongoing; while non-IFRS in P&L, they represent a meaningful cash drain (offset partially by the Pfizer put option removal once the ViiV transaction closes).
- FX headwinds: If current rates persist, 2026 Sterling turnover growth could see ~–3% impact and Core operating profit ~–6%; may affect reported dividend cover.
- Legal overhang (Zantac et al.): Provisions reduced and many cases resolved/dismissed, but residual cases and appeals remain; outcome uncertainty persists.
- Capital intensity: Management expects R&D to grow ahead of sales and continues to fund launches; near-term cash needs rise but are balanced by strong FCF and disciplined SG&A.
Bottom Line
- The Q4 2025 dividend of 18p with ex-dividend date 19/02/2026 is well covered by earnings and cash flow.
- Dividend trajectory is positive (61p ? 66p ? 70p expected), supported by Specialty Medicines growth, robust FCF, moderate leverage, and concurrent buybacks.
- Key watchpoints are US pricing dynamics, ongoing ViiV cash obligations, and FX; the pending ViiV transaction (removing the Pfizer put) is a structural positive for future cash flexibility.
Read more
GSK Annual Dividend Yield - 1.61%
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 |
Total (Annual Dividends Per Share):
34.00p
Dividend Yield =
Annual Dividends Per Share (34.00p)
÷ Share Price (2115p)
= 1.61%
GSK Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 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) |
8.2%
|
| Dividend CAGR (5Y) |
-7.97%
|
| Years of Growth |
2
|
| Payout Ratio |
44.86%
|
| Buyback Yield |
0.6%
|
| Shareholder Yield |
3.91%
|
| P/E Ratio (TTM) | 15.29 |
|---|
| Forward P/E | 11.82 |
|---|
| P/FCF | 13.31 |
|---|
| Earnings Yield | 6.72% |
|---|
| FCF Yield | 7.52% |
|---|
| ROE | 43.31% |
|---|
| ROCE | 23.74% |
|---|
| Profit Margin | 17.5% |
|---|
| Operating Margin | 28.87% |
|---|
| Gross Margin | 72.61% |
|---|