10 Best FTSE Dividend Stocks To Buy Now

3. GSK plc (NYSE:GSK)

Number of Hedge Fund Holders: 41

GSK plc (NYSE:GSK) is a leading global healthcare company that operates across various therapeutic areas, including vaccines, respiratory, and oncology. The company currently offers a quarterly dividend of $0.376 per share for a dividend yield of 3.67%. This stock is up by nearly 10% year-to-date, although it experienced volatility in the first week of June when shares dropped by over 9%. This decline occurred after a Delaware judge permitted over 70,000 lawsuits claiming that its discontinued heartburn medication Zantac led to cancer, posing a setback for the British pharmaceutical company. This ongoing uncertainty adds to a challenging decade for GSK, as the company continues to struggle with the need to replenish its pharmaceutical pipeline. However, with nearly 90 products currently in its R&D pipeline, it appears that the company is making significant progress.

From a dividend perspective, GSK plc (NYSE:GSK) can be a solid investment. Though the company’s dividend has encountered some challenges in the past, its cash position indicates that the company has enough resources on its balance sheet to sustain its payouts. In Q1 2024, the company generated over £1 billion ($1.26 billion) in operating cash flow and its free cash flow came in at £300 million ($379.47 million). During the quarter, it returned £568 million ($718.46 million) to shareholders through dividends, which places it on our list of the best FTSE dividend stocks.

GSK plc (NYSE:GSK) has a forward P/E of 10.21, lower than AstraZeneca’s forward P/E ratio of 18.94. Considering analysts’ estimates of an 8% revenue growth this year, GSK seems to be trading at a good value for a high-quality company.

The number of hedge funds tracked by Insider Monkey owning stakes in GSK plc (NYSE:GSK) grew to 41 from 40 during the first three months of 2024. These funds held in aggregate $2 billion worth of GSK shares at the end of March.