Better Buy: GlaxoSmithKline plc vs. Pfizer
Big drug companies can add an element of stability to investor portfolios. People get sick and need treatment whether the economy is booming or tanking. And big pharma tends to pay hefty dividends, a valuable source of steady income in an era of low returns on fixed-income investments. Investors in these stocks want to know that the dividend is safe and that there is some reasonable amount of growth that can support a rising dividend and some capital gains as well.
Pfizer (NYSE: PFE) and GlaxoSmithKline plc (NYSE: GSK) are two of the biggest and steadiest in the industry, and both pay generous dividends. Which one is the smarter pick for new money today? Here's how the two compare.
Glaxo has made big strides in diversifying its business and strengthening its financials since a 2015 asset swap with Novartis. It has lessened its risk associated with the uncertainties of drug pipeline events, built up free cash flow, maintained a healthy dividend, and put the company on a path for steady growth.
Source: Fool.com
GSK plc ADR Stock
Currently there is a rather positive sentiment for GSK plc ADR with 4 Buy predictions and 0 Sell predictions.
On the other hand, the target price of 35 € is below the current price of 38.2 € for GSK plc ADR, so the potential is actually -8.38%.
