Back then, GlaxoSmithKline was seen as one of the most solid and reliable dividend stocks on the blue-chip index. A yield of 5%-6% seemed assured, with steady share price growth too. The shares were then plunged as the dot-com boom unwound and by 2004, they’d roughly halved. Progress since then has been patchy.

Until recently, the stock was bumping along near a 10-year low. Suddenly, that’s changed.

FTSE 100 big seller

GSK’s now the most popular stock among UK investors over the last week, accounting for 5.46% of all purchases on the AJ Bell platform. That’s more than double second-placed Legal & General, with just 2.63%. It’s also streaking ahead of big sellers like Microsoft, Rolls-Royce, BAE Systems, Nvidia and BP. So what’s driving the surge?

It’s not down to fresh news. GSK hasn’t reported since 4 February, when it posted a strong set of results. Full-year sales rose 7% to £32.7bn, while underlying operating profit climbed 11% to £9.8bn, slightly ahead of expectations.

New chief executive Luke Miels maintained the growth targets set by predecessor Emma Walmsley, with sales forecast to reach £40bn by 2031.

For years, GSK struggled as it worked to replenish its drugs pipeline after a string of blockbuster treatments came off patent. To fund that investment, Walmsley froze the dividend at 80p per share for eight long years to 2022. That dreary stretch culminated in a cut to 57.75p, instead of the hoped-for hike.

We’ve seen a couple of respectable dividend increases, lifting the full-year 2025 payout to 60.6p. Further growth seems possible, with free cash flow jumping 41% to £4bn.

Dividends and growth

Income seekers may be underwhelmed by the current yield of around 3.1%, but that’s partly because the share price has done so well. GSK is up an impressive 56% over the last year. I’m personally thrilled with that, having bought in two years ago.

GSK looks built for volatile times like today. I can see why it’s in demand. The valuation remains reasonable, with a price-to-earnings ratio of 12.3 (it looked like a screaming bargain with a P/E of eight when I bought it).

It’s also produced a string of clinical successes, which have further bolstered investor demand. But as with every stock, there are still risks. Like all pharmaceutical companies, GSK faces constant pressure to develop new treatments and vaccines. But the process is lengthy, and late stage failures are always a risk.

The sector’s also under pressure from governments to cut drug prices. US tariff concerns also linger, as do the risk of class action lawsuits.

Even so, GSK’s delivered. For investors with a long-term outlook, it still looks well worth considering. Yet after such a strong run, anyone buying today should be ready for a period of slower progress from here.

The post Suddenly investors can’t get enough of GSK shares! What’s going on? appeared first on The Motley Fool UK.

But what’s behind this momentum? And is there more to come?

What’s going on with GSK shares?

I don’t think GSK’s purple patch of form is down to one thing. But let’s begin with good, old-fashioned earnings.

Full-year results for 2025 beat expectations. Revenue increased 7% to £32.7bn, helped by a 17% rise at its Speciality Medicines division (HIV, Oncology and Respiratory/Immunology). Core operating profit hit £9.8bn — an 11% uplift on the previous year.

Having been in top-tier peer AstraZeneca‘s shadow for so long, GSK’s pipeline is now starting to look more promising as well. No less than 13 new cancer drugs are currently in development, for example.

One could also argue that the market has now adjusted to the Brentford-based business’s decision spin off its consumer arm (Haleon) a few years ago and become a pure-play biopharma company. This implies a more growth-focused strategy — something that should appeal to a new audience of investors.

Still cheap

Despite it doing so well already, there are a few reasons for thinking the party might continue.

Q1 numbers are due on 29 April. Unless there are any nasties lurking, I don’t see why this stock can’t carry on rising in value. A positive sign has been the spate of director buying seen last month. We’re not talking small change either. If those who know the company best are willing to put their own money to work, I take that as very encouraging.

Second, the valuation remains reasonable. A price-to-earnings (P/E) ratio of 12 is still cheap relative to other companies in the healthcare sector. GSK also boasts above-average operating margins and returns on capital (essentially, what it gets back for the money it puts in the business), at least relative to other UK stocks.

The stock yields 3.4% too. Sure, it would be a mistake for investors to assume that any dividends are guaranteed. But GSK’s cash distributions look like they will easily be covered by expected profit. This assumes, of course, that analyst projections are on the money.

This is not to say that the £86bn cap is devoid of risk. An ongoing problem for pharmaceutical firms is that the patents on some of their drugs are set to expire. This includes GSK. On top of this, some/all of those aforementioned new drugs in development might fail.

Great option

As I type, GSK shares are the most popular buy this week on AJ Bell‘s investment platform. Given how fickle investors can be, I don’t put much weight on this. Next week, there’ll be another ‘top of the stocks’. What’s more important from a Foolish perspective is whether this is a solid pick for the long term.

In my opinion, this is the case. While some of the recent momentum may be down to the valuation simply catching up with events, this remains a great defensive option to consider buying for uncertain times.

And I’d say that’s where we are right now.

The post Why is everyone buying GSK shares? appeared first on The Motley Fool UK.

Post-Haleon demerger, GSK is a cleaner, more predictable business with strong earnings growth drivers in vaccines and HIV.

But the stock is still valued way below many global pharma rivals, so where should it be trading?

Undervalued compared to peers?

GSK looks cheap on key stock measures against its competitors.

Its price-to-earnings ratio of 15 is bottom of this group, which averages 25.2. These firms comprise Merck KGaA at 18.3, Zoetis at 18.7, AstraZeneca at 30.7, and CSL at 33. So it looks very cheap on this basis.

It also looks a bargain on its 2.6 price-to-sales ratio, compared to its peer group average of 4. And the same is true of its 5.2 price-to-book ratio against its competitor average of 6.4.

‘Correct’ price?

Discounted cash flow (DCF) analysis identifies the price at which any stock should trade based on the underlying business’s fundamentals. It does this by projecting a firm’s future cash flows and ‘discounting’ them back to today.

Some analysts’ DCF modelling is more conservative than mine — depending on the variables used. However, based on my DCF assumptions — including a 7.2% discount rate — GSK shares are 54% undervalued at their current £21.68 price.

So, this implies a ‘fair value’ for the stock of around £47.13 — more than double where it trades now.

The difference between any stock’s price and its fair value is crucial for long-term investors’ profits. This is because share prices tend to converge to their fair value over time.

So the price-to-value gap for GSK shares suggests a potentially terrific buying opportunity to consider today if those DCF assumptions prove accurate.

Earnings growth drivers

The key to long-term gains on any company’s share price (and dividends) is sustained growth in earnings (‘profits’). A risk to GSK is any failure in one of its key products that could lead to litigation. Another is intense competition in the vaccines sector, which could squeeze its margins.

Nevertheless, analysts forecast its earnings will grow a solid 6% a year on average over the medium term at minimum. And this looks well supported by its recent results.

Core operating profit increased 7% year on year to £9.8bn, underpinned by disciplined cost control and improved mix. Core earnings per share climbed 8% to 172p, highlighting the benefits of GSK’s sharper post‑demerger focus. And turnover rose 4% year on year to £32.7bn, reflecting continued strength in vaccines and speciality medicines.

Together, these results underline operational momentum that should continue to drive earnings growth ahead.

My investment view

What makes GSK compelling to me is the blend of stability and potential, which is why I will buy more soon. In short, it is not just a business with reliable earnings but also catalysts that could drive a meaningful re‑rating.

Investors rarely get the chance to buy a global pharma at a price that assumes so little future progress. And with the company’s vaccines, HIV, and pipeline execution, the wider market will also have to reassess its valuation soon.

The post GSK’s share price is under £22, but with a ‘fair value’ much higher, is it time for me to buy more right now?  appeared first on The Motley Fool UK.

At the heart of this renewed pessimism stands the Iran war, which is triggering an energy inflation shock due to the disruption of the flow of oil & gas through the Strait of Hormuz. As such, most central banks have hit pause on their interest rate cutting policies, economic growth forecasts have been slashed, while recession probabilities from institutional analysts are being revised upwards.

With all that in mind, it might sound like a good idea to stay on the sidelines and wait for a market crash to happen before investing any money. But in practice, this might be a critical and costly mistake. Here’s why.

Time in the market vs timing the market

In the short term, the stock market is near-impossible to predict. Unexpected catalysts for rallies and sell-offs can emerge without warning, and it’s why trying to time the market is almost always a losing endeavour.

All too often, investors waiting for disaster to strike often miss the bottom and end up buying shares at higher prices after the recovery has begun.

Looking at the data, analysts have discovered that missing just 10 of the best trading days by trying to time the market would have cut a portfolio’s return in half over the last 30 years. And since the best days are always clustered around the worst, investors who are trying to perfectly time the bottom are at serious risk of missing out.

Instead, the evidence overwhelmingly supports holding through stock market storms and using the volatility to buy more shares at a discount.

Buying opportunities in 2026

Even with higher levels of uncertainty, several UK stocks remain high-conviction picks among institutional investors in April. And among these stands GSK (LSE:GSK) – the UK’s second largest pharmaceutical giant.

In 2025, GSK beat analyst forecasts on almost every metric, with pre-tax profits and core earnings per share charging ahead by double digits. But in 2026, this momentum might be set to accelerate even further.

Management anticipates receiving another two major drug approvals from regulators while also aiming to kick-start 10 new pivotal clinical trials and provide updates for five ongoing major trials as well.

In other words, the business has a lot of potential growth catalysts scattered throughout 2026. And while higher energy costs and economic weakness do create some potential headwinds, healthcare demand’s notoriously resilient to recessions.

That’s why, despite all the recent stock market uncertainty, GSK shares are actually up more than 16% since the start of the year. And according to some institutional analysts, the pharma giant may have further to climb.

Of course, that doesn’t mean GSK’s a risk-free investment. Clinical trial updates aren’t always positive, and regulatory approvals can be fickle. At the same time, with several blockbuster drugs losing their patent protection in the coming years, GSK’s momentum might start to slow.

These are all crucial risks for investors to consider carefully. But for those looking for opportunities to deploy capital in the stock market today, GSK is nonetheless worth a closer look, in my opinion.

The post Waiting for a stock market crash? Don’t make this fatal mistake! appeared first on The Motley Fool UK.

Those who can invest their ISA allowance early in the tax year give themselves a valuable head start. Time in the market matters. The longer the money is invested, the more chance it has to grow and compound.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

New figures from Vanguard underline this. An investor putting £20,000 into a spread of global shares at the start of each tax year over the past decade would have £393,102 today. Waiting until the final day of each tax year would have produced £349,234. That £44,000 shortfall is purely down to lost time in the market. Each contribution had less opportunity to grow, and that shortfall compounds over time.

Early-bird investing pays

Let’s say an investor uses their full £20k allowance on the first date of the tax year, for 20 years. I know most of us can’t afford to do that, but the results are stunning for those who can. Assuming an average annual compound total return of 8% a year (not guaranteed, of course), they’d end up with £988,458.

If their pot was invested in FTSE 100 dividend stocks producing an average yield of 5% a year, they’d generate a stunning £49,423 a year income. Better still, that doesn’t eat into the original capital, leaving it intact and still growing.

GSK shares are flying

Pharmaceuticals giant GSK (LSE: GSK) is one FTSE 100 stock that’s worked well for me lately. After a lengthy rebuilding phase, the business has regained momentum. The share price is up more than 70% over the last year and has even climbed 6% in the past month, despite Middle East tensions.

It’s not quite as cheap as it was when I bought it in 2024. Back then, the price-to-earnings ratio was around eight. Today, it’s edged up to 12.7. But that still looks reasonable for a global healthcare name with improving prospects. As the share price has climbed, the yield has eased back to around 3%. That’s lower than before, but still offers a steady stream of income alongside potential growth.

As always, there are risks to consider. Drug development is expensive and uncertain, and may ultimately lead to nothing. Tariffs, tight government budgets and class action lawsuits can all hit the bottom line. Share price growth may ease up from here, but GSK strikes me as a dependable long-term holding.

Building the stream

No investor should base their retirement on a single dividend income stock. It’s essential to have a diversified spread of shares, across different sectors. There are plenty of established names across the FTSE 100 and FTSE 250 offering yields of 5%, 6% or even 7% today. Many look great value after recent volatility. The earlier investors start, the better. However, those who don’t have large sums of cash handy will find drip-feeding money into the market pays off too.

The post Here’s how a £20,000 ISA could be the starting point for a £50k annual passive income appeared first on The Motley Fool UK.

A consistent track record

First up is GSK (LSE:GSK). The global pharma giant is up 57% over the past year and 10% so far in 2026, despite recent market turmoil.

If the share price performance wasn’t enough to prove the company can do well even during volatile times, the business model should. It sells essential medicines and vaccines, so demand doesn’t fall during recessions or geopolitical shocks. Healthcare demand is structurally rising, primarily due to ageing populations the world over.

At the same time, it’s investing heavily in new products. Recent trading updates showed a strong pipeline in areas like HIV, oncology, respiratory and others. This should act to future-proof the company, as medical advances continue to play out.

From a valuation perspective, I don’t believe it’s overvalued. In fact, with a price-to-earnings ratio of 12.19, it’s well below the FTSE 100 average of 17.6. Therefore, it could be considered a value play along with its defensive attributes.

In terms of risks, it’ll always be at the mercy of the respective regulators around the world. If sentiment changes and certain drugs don’t get approved, it could present costly mistakes for the company.

UK-centric

Another firm to consider is J Sainsbury (LSE:SBRY). So far this year, the stock is up 3%, and up 48% over the past year. I’d argue that food retail is one of the most non-discretionary items for any consumer. No matter what happens with global wars or a struggling UK economy, people need to eat.

That puts supermarkets like Sainsbury’s in the same defensive bucket as GSK, but arguably even more so due to the frequent, habitual spending of foodstuffs. Further, Sainsbury’s revenue is overwhelmingly UK-based, with supply chains that are more localised than global industrial firms. So even though it may experience some supply chain disruption due to the conflicts, it is not as large as other sectors.

Importantly, the firm competes across price tiers (including things like Aldi price-matching strategies). It has its own strong-brand ranges, which offer higher profit margins than branded goods.

When I add it all together, I think the company could be considered by investors. Of course, the supermarket space is very competitive. It operates on low profit margins, meaning that only a relatively small cost increase can hurt the overall business. But even with this, I still think the outlook for the coming year is net positive.

The post 2 FTSE 100 shares that could outperform this year regardless of geopolitics appeared first on The Motley Fool UK.

Stock market dips happen. It’s unsettling, but it’s part of the deal. Some investors will be tempted to sell and cut their losses. Others will be eyeing potential bargains. So what’s the best strategy?

At The Motley Fool, we believe short-term market volatility is the price investors pay for the superior long-term returns equities have historically delivered. Shares don’t move in straight lines — they climb, wobble, and occasionally plunge.

SIPPs and ISAs

Money needed in the next couple of years shouldn’t be in the stock market. But long-term money, such as retirement savings, will work a lot harder in equities.

Investors can turn market dips to their advantage, by picking up cut-price shares. They’ll bag lower valuations, and higher yields too.

It takes nerve though, especially today. That said, it took nerve to buy shares during the 2020 Covid crash, Russia’s invasion of Ukraine in 2022, and Donald Trump’s ‘liberation day’ tariff threats last year. Each time, investors who held firm were rewarded. But is this time different?

There are clearly risks, but there are also some really tempting targets. Around a dozen FTSE 100 stocks have fallen 20% or more in a matter of weeks. Instead of going all in, a sensible approach might be to drip-feed money into equities over time. That way, investors can take advantage of lower prices without committing everything at once.

GSK shares tempt

Stock selection matters too. One FTSE 100 name that’s done well for me lately is pharmaceutical giant GSK (LSE: GSK). It’s been through a long rebuilding phase, with management freezing dividends and diverting the savings into strengthening its pipeline of drugs and vaccines, to build future revenues.

Its strategy was starting to bear fruit before the Middle East exploded. The GSK share price has slipped around 7% in the past month, broadly in line with the wider FTSE 100. Yet it’s still up almost 40% over the last year. The recent pullback may offer a potential entry point.

The price-to-earnings ratio sits at around 11.9, which suggests the stock still offers decent value. That’s not just down to geopolitics, it’s been low for some time. Investors may simply be reluctant to push the shares higher.

The dividend yield stands at roughly 3.2%. Income investors may need to temper their expectations here. Or track down higher yields elsewhere. There are plenty about.

There are risks. Drug development is costly and uncertain, US tariffs are a concern, and competition is intense. But for me, GSK looks like a solid long-term holding. Not the most exciting UK stock, but one that can play a useful role in a balanced portfolio alongside higher-growth or higher-yielding names.

So is this is a once-in-a-decade FTSE 100 buying opportunity? I’m not convinced we’re quite there yet. But if the volatility continues, that moment may not be far away.

The post Is the stock market correction a once-in-decade chance to buy great value UK shares? appeared first on The Motley Fool UK.

Fortunately, a fresh allowance opens up with the new tax year in early April. That gives British residents a chance to open a new ISA or top up their existing portfolios.

But with so many stocks to choose from, where should you start?

Top ISA stocks

When researching where most ISA investors tend to put their money, three FTSE 100 names keep coming up: Shell, Lloyds, and GSK (LSE: GSK). Among ISA millionaires, roughly 39% hold Shell, while about 32% hold Lloyds and roughly the same proportion own GSK. That makes them some of the most commonly-held stocks in high‑value ISAs.

Shell’s popular for its global energy exposure and generous dividends, and Lloyds is a classic play on the UK economy and housing market. But I find GSK particularly interesting right now, because its numbers are looking very impressive.

Let’s break down why it could be a top FTSE 100 pick to consider for an ISA this season.

A stable income pick

Since decoupling its consumer healthcare business in 2022, GSK’s grown to become a global pharmaceutical and vaccines giant.

In 2025, it delivered sales of around £32.7bn, with growth driven by speciality medicines and key vaccines. Operating profit and earnings rose sharply as legal costs fell and newer products scaled up. Now, management’s guiding for further turnover and earnings growth in 2026, aiming to push annual sales beyond £40bn by 2031.

But the big attraction for me is income. Admittedly, the 3.6% dividend yield isn’t spectacular, but it IS well-covered — which is arguably more important. With a 46.8% payout ratio and cash coverage of 3.6 times, there’s very little risk of a cut any time soon.

That kind of coverage gives management room to keep investing in research without ignoring shareholders. In my opinion, a sensible payout backed by strong cash flow is exactly what long‑term ISA holders should be focusing on.

Fairly-priced and profitable

With a price‑to‑earnings (P/E) ratio of 14 and a P/E‑to‑growth (PEG) ratio of just 0.11, GSK’s valuation looks good. Basically, it’s low-priced compared to the level of growth it’s achieved. You could even consider it undervalued — if you believe the business will deliver as planned.

Profitability’s another plus. Return on equity (ROE) is around 38% and net margins are about 17.5% — strong numbers even by pharma standards. That gives the company more breathing space to ride out volatility, which is critical in today’s market.

But like all big drug makers, GSK’s at risk from patent expiries and tougher global drug‑pricing rules. If key medicines lose exclusivity faster than the pipeline can replace them, or if pricing reforms bite harder than expected, profits and the share price could suffer.

Final thoughts

Overall, GSK’s the kind of steady, cash‑generative business you get with diversified global healthcare exposure, a well‑covered dividend, and a valuation that doesn’t look over the top.

For UK investors aiming to hold for years rather than months, it could be worth considering for a long‑term Stocks and Shares ISA, alongside other FTSE 100 favourites.

The post Here are 3 of the most popular FTSE 100 stocks in a Stocks and Shares ISA appeared first on The Motley Fool UK.

I’ve picked out three great UK shares I think could surge from current levels: Coca-Cola HBC (LSE:CCH), GSK (LSE:GSK), and Greggs (LSE:GRG). Want to know why they could deliver blockbuster returns over the long haul?

Sparkling outlook

Coca-Cola HBC bottles and sells some of the world’s most popular drinks across Europe and parts of Africa. It’s slumped 8% in value over the last month, greater than the broader FTSE 100’s 5% decline.

Like other consumer goods producers, it’s dropped on fears of surging inflation. But is the stock market overreacting here? I think so.

Rising prices will push Coca-Cola’s cost base higher and dent consumer spending, sure. Yet the company has a stellar record of passing these extra costs onto shoppers even when they’re feeling the pinch. The likes of Coke, Sprite, and Schweppes remain in high demand at all points of the economic cycle, such is their incredible brand power.

Coca-Cola HBC’s price-to-earnings (P/E) ratio has dropped to 17.5 times, well below the 10-year average of 21-22. Despite the significant threats posed by competitors, I think this is a top dip buying opportunity to consider.

Another FTSE faller

Pharmaceutical stocks like GSK are among the most resilient to outside conditions. So why has this FTSE 100 company slumped 12% over the past month?

Maybe this can be explained away by the broader risk aversion sweeping stock markets. GSK’s share price surge in 2025 has left it especially vulnerable to such conditions.

I’m confident the drugs giant will surge back once investor confidence improves. US vaccine demand remains problematic, but growth is strong in other areas like HIV and oncology. The company is accelerating its product pipeline too to drive future profits.

Today GSK shares trade on a forward P/E ratio of 10.6 times. That’s fractionally below the 10-year average.

Set to rise?

Greggs’ sales have been staging a modest recovery of late. But inflationary pressures and tough conditions for UK consumers pose a threat to that uptick. Latest data showed UK wages rise at the slowest pace for five years.

The market is therefore re-rating Greggs shares again, and its price has dropped 6% over the past week. As an investor here myself, I’m thinking of topping up my holdings. The P/E ratio has slipped to 12.5 times from the long-term average of 22-23.

I’m confident the baker will come roaring back even if sales backpedal again in the near term. There is still considerable scope to expand in the delivery and evening segments, two of the fastest growing channels. The FTSE 250 firm is also focusing its ambitious store expansion drive on more lucrative franchise and transport hub stores to drive future earnings.

The post Forget short-term pain. Consider these 3 FTSE shares for long-term gain! appeared first on The Motley Fool UK.

The argument typically comes to a head as the Stocks and Shares ISA deadline looms. With 5 April now less than three weeks away, many will be rushing to contribute to an ISA. Yet I think Self-Invested Personal Pensions are often overlooked and deserve a proper hearing. So which comes out on top?

Given the competing and often confusing tax perks, I decided to ask ChatGPT to settle the ISA v SIPP debate once and for all.

Competing tax wrappers

It kicked off by praising ISAs for their simplicity. Money grows free from income tax and capital gains tax, and withdrawals are completely tax-free. “Investors can dip in whenever they like. That flexibility is hard to beat“, the chatbot said.

It said the big draw of a SIPP is upfront tax relief on contributions. Pay in £80 and the government tops it up to £100, for basic-rate taxpayers. Higher-rate taxpayers can claim another £20 back. That’s an instant return and the tax relief generates dividends and growth, too.

Please note that tax treatment depends on individual circumstances and may change in future. This article is for information only and does not constitute tax advice. Investors should do their own research and consider seeking professional guidance.

There’s a catch. SIPP money is locked away until at least age 55, rising to 57 from 2028. Also, withdrawals are taxable. ChatGPT refused to declare an outright winner. Fair enough. My own view is that it’s not a basic either/or decision. SIPPs and ISAs can work brilliantly together. SIPPs give investors tax relief on the way in, ISAs on the way out. Balancing the two gives investors the best of both worlds.

Then comes the fun part – choosing what to invest in. This is where I dispense with ChatGPT’s services. I’d never trust it to buy shares, as it’s too erratic and makes simple mistakes. Stock picking still requires human intelligence rather than the artificial variety.

GSK shares look good value

One FTSE 100 stock that’s caught my eye is pharmaceutical giant GSK (LSE: GSK). Its shares struggled for years as former boss Emma Walmsley ploughed cash into rebuilding the drugs pipeline rather than boosting dividends. Investors had to be patient as payouts stagnated and the share price went nowhere.

Now the picture is improving. Before recent market jitters, the shares had been climbing strongly. The GSK share price is still up 35% over the last 12 months, and that’s despite a dip of 7.5% in the last month. I think that could be a buying opportunity for those who missed out on the recent recovery. 

The dividend yield isn’t as high as it used to be. Today, it’s a more modest 3.3%. However, a price-to-earnings ratio of 11.8 suggests it’s decent value. There are risks. Drug development is costly, slow, and can fail late in the process. Competition is also fierce, with rivals racing to bring new treatments to market.

Even so, I think GSK is worth considering with a long-term view. Thanks to recent volatility, I can see plenty more dividend growth bargains on the FTSE 100 today.

The post I asked ChatGPT to settle the ISA v SIPP debate once and for all. It said… appeared first on The Motley Fool UK.