GlaxoSmithKline plc (ADR) (GSK): Why You Should Buy This European Healthcare Company

Glaxo: Growing both profits and dividends

That’s where GlaxoSmithKline plc (ADR) (NYSE:GSK) shines. Despite its struggles in recent years, Glaxo is still able to offer investors a meaningful pay bump on an annual basis. Glaxo’s management remains steadfast in their commitment to increasing its payout. The company declared a fourth-quarter dividend higher than its quarterly payout last year. GlaxoSmithKline plc (ADR) (NYSE:GSK)’s four quarterly dividends in 2012 amounted to 74 pence versus 70 pence in 2011, an increase of more than 5% year over year.

Not only does Glaxo increase its dividend regularly, but the company’s 4.5% current yield is significantly higher than the yield offered by both Pfizer and Eli Lilly.

Glaxo is up roughly 16% to start 2013, not even including its hefty dividend payments, so it’s understandable for value-conscious investors to wait for a better price before jumping in. I’ve had GlaxoSmithKline plc (ADR) (NYSE:GSK) on my watch list for some time, and it has come off its recent highs. Should the stock retrace back into the mid-forties, I’ll be pulling the trigger. For any investor interested in steady growth and an industry-leading dividend yield, Glaxo represents a great stock to buy.

The article Why You Should Buy This European Healthcare Company originally appeared on Fool.com and is written by Robert Ciura.

Robert Ciura has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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