UK dividend giant bets on vaccines and stable yields

In our analysis today, we focus on a company that represents one of the most interesting dividend titles in the pharmaceutical sector. It plans to pay a dividend of 64p per share for 2025, representing 5.2% growth year-on-year, while delivering an attractive dividend yield of over 4%. The move is backed by strong cash flow, with the firm achieving operating cash flow of £7.9bn and free cash flow of £2.9bn in 2024. The company has also launched a £2bn share buyback programme, further supporting the return on capital for shareholders.

In addition to a stable dividend, the company impresses with solid numbers, with operating profit up 50% and net earnings per share up 56% in the first quarter of 2025, reflecting strong performance in specialty pharmaceuticals. For example, oncology drugs saw 53% year-over-year revenue growth, respiratory therapies and immunology products grew 28%. Interestingly, the company is the creator of the first WHO-approved malaria vaccine, holds a leading position…