There are many robust dividend shares within the FTSE 100 Index proper now. The Footsie common dividend yield is sitting at 3.5% as I write on 19 Could with some big-name shares providing compelling payouts to shareholders.

GSK (LSE: GSK) is one such firm that has caught my eye. The multinational pharmaceutical large has a ahead dividend yield of 4.6% and commonly pays out a excessive share of its earnings to shareholders.

With that in thoughts, listed here are a few the explanation why I feel GSK is a dividend inventory for traders to think about in 2025.

Latest efficiency

It hasn’t been all plain-sailing for the GSK share price in current occasions. Regardless of climbing 2.6% in 2025 to £13.97 as I write, the corporate’s shares are nonetheless down 21.3% within the final 12 months.

There are just a few components at play right here. A $2.2bn (£1.7bn) settlement over its heartburn treatment drug, Zantac, in October final 12 months weighed on the share price alongside falling vaccine gross sales.

Nevertheless, 2025 acquired off to a robust begin with progress in income and income, largely pushed by 17% progress in its specialty medicines phase gross sales within the first quarter. On a relentless trade fee (CER) foundation, Q1 gross sales elevated by 4% to £7.5bn whereas core working income climbed 5% to £2.5bn.

This optimistic begin, mixed with a historical past as a robust dividend payer and shareholder-friendly board, makes it a FTSE 100 inventory value a better look by dividend traders, I really feel.

Valuation

That mentioned, GSK’s present price-to-earnings (P/E) ratio is eighteen.3 which is properly above the Footsie common 

Prescribed drugs as a sector does have a tendency to return with larger ratios than the market common. That’s as a result of a lot upfront funding is made within the potential money cow medication of tomorrow, so a whole lot of progress is baked into the present share costs of those firms.

With that in thoughts, GSK appears a contact undervalued to me. For instance, fellow prescribed drugs large AstraZeneca has a P/E ratio of 27.4 as I write. This relative pricing in opposition to key friends is simply one more reason I feel the inventory is value contemplating.

dividends, the corporate expects to pay a full-year distribution of 64p per share. That’s inside its goal payout ratio of 40% to 60% and represents a dividend yield of 4.6%.

My Verdict

I feel GSK is value additional research. The optimistic earnings outlook and powerful historical past as a dividend payer might present a worthwhile basis for future earnings.

From a private standpoint, I’m pleased with my present portfolio combine so I received’t be shopping for proper now. There are dangers to this thesis after all, with a P/E ratio properly above the Footsie common in a sector with regulatory danger and vital upfront prices.

With a major market cap of £57.3bn and a sector that tends to carry up properly all through the financial cycle, I just like the long-term prospects of GSK. These components make the corporate one which I feel earnings traders ought to be taking a better take a look at in 2025.