A while back I reported the fact that GlaxoSmithKline (NYSE:GSK) was finally looking like it was turning a corner. With new products beginning to make headway, and a bedding-down of the disruptive yet potentially lucrative shift towards a greater reliance on vaccines and consumer health rather than pharmaceuticals, it has started looking good. Later I did raise one concern I had: its dividend.
The dividend itself is appealing. After the dramatic post-Brexit lurch in its share price, it is yielding nearly 5%. My issue was the matter of the FCF coverage (or rather, the lack of it):
