GlaxoSmithKline offers investors attractive yield and growth story

As GlaxoSmithKline reports full year results Helal Miah, investment research analyst at The Share Centre, explains what they mean for investors.

"GlaxoSmithKline's full year results are largely in line with expectations, with 2012 figures generally flat compared to 2011. In a challenging operating environment unsurprisingly sales in Europe took the biggest hit, falling more than expected, down 7%. The company's investment in emerging markets is paying off with the region making up for the losses, showing strong sales growth of 10%.

"Investors will be pleased to see new drugs coming to the market and the company's confidence of improving R&D returns to 14%.

"We continue to recommend investors ‘buy' GlaxoSmithKline for stability in a portfolio. The yield is attractive at over 5% and the growth story also looks to be improving. Earnings per share growth in 2013 is expected to be 3-4% which is positive for investors. The business is very cash generative and is committed to using this to increase dividends, share buybacks and bolt-on acquisitions, which are expected to continue to in 2013."

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