No. of Recommendations: 1

Sold. I prefer GSK, where I have a larger holding (in fact, it is one of my largest holdings now). Though GSK is on a higher P/E, it offers a higher yield than AZN and earnings are forecast to rise between 2011 and 2012, whereas AZN’s earnings are forecast to decline. Though western markets may be squeezed, GSK seems well placed to benefit from a growing middle class in Asian markets, who are prepared to pay a premium for branded, genuine pharmaceuticals. That underpins my view that the excellent yield on offer (CY 5.7%, 2012 6.1% forecast) is reasonably safe.

I don't know where you get your data from, but I make the yield on GSK 5.47% and that on AZN 5.46%.

That's based on the last full year for GSK giving 65.00p on a price of 1189.00p, and AZN giving 161.60p on 2957.00p.

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