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Why Does GlaxoSmithKline plc Yield So Much More Than AstraZeneca plc?

VIDEO: One Fool takes a closer look at GlaxoSmithKline plc (LON:GSK) and AstraZeneca plc (LON:AZN)

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Owain Bennallack
Owain is a magpie of the investing world -- and not because he gets into a flap. Almost any style of investing might suit him, depending on the bigger picture, and he's held all sorts of companies. Paraphrasing Keynes, he says: “When the market changes, I change my mind -- what do you do?” That said, Owain is usually a buyer of equities, where he prefers lightly geared, modestly rated companies, and is increasingly on the lookout for Buffett-style intangible quality. He aspires to buy-and-hold: his best investment ideas are worth much more than he sold them for. Then again, his worst investment went bust due to management fraud!
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These two British drugs behemoths are similar businesses that both pay big dividends, and they’ve mostly tended to move in lockstep. However, in recent months GlaxoSmithKline (LSE: GSK) has sported a much higher — and hence more potentially more attractive — yield than AstraZeneca (LSE: AZN). So what’s up? Owain Bennallack investigates…


Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Owain Bennallack owns shares in GSK and AZN. The Motley Fool UK has recommended GlaxoSmithKline. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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