I think the GSK share price could help you retire early

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. Rupert Hargreaves | Sunday, 5th July, 2020 | More on: GSK I think the GSK share price could help you retire early Image source: Getty Images Our 6 ‘Best Buys Now’ Shares Of all the 100 different stocks in the FTSE 100, I think the GSK (LSE: GSK) share price has more potential to help you retire early than most. It all comes down to the company’s defensive nature. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…GSK share price growth Healthcare is one of the world’s most defensive markets. The treatments and products produced by GSK will always be required, and as the population grows, so will demand. But there’s more to GSK that its existing portfolio of drugs and medications. The company also spends billions of pounds every year researching new treatments. These products are designed to combat existing diseases and viruses, as well as new threats. The group is always trying to think of new ways to treat old problems and to address new issues. Management also considers acquisitions regularly. These efforts should help the company maintain its edge in the global pharmaceutical industry, not just in the short term, but in the long run as well.This is the primary reason why the GSK share price could make an excellent buy-and-forget investment. Its products will always be in demand, and demand will only grow over the long run. That means to a certain extent the business runs itself. The company’s consumer pharmaceuticals division is another positive factor. Management is planning to spin off this business in the near term, which could create a windfall for shareholders. A special dividend or shares in the business may be distributed to existing GSK share price holders. Income returns It’s also good news for income seekers. GSK’s defensive business model means that the company has a relatively stable and predictable income stream from operations. This supports an attractive dividend yield on the GSK share price. Indeed, over the past few months, many FTSE 100 businesses have been forced to cut or eliminate their dividends to conserve cash in the coronavirus crisis. GSK is one of the few companies in the index that has not taken this course of action.As a result, at the time of writing the stock supports a dividend yield of 4.9%, above the FTSE 100 average of around 4%. This looks set to continue as the dividend is well covered by earnings per share. The dividend cover stands at 1.5.Retire early All of the above suggests that the GSK share price may be an excellent buy for any investor’s retirement portfolio. Over the long term, earnings per share should grow at least in line with inflation. That implies the company can achieve long-run earnings growth of 3% or more. Coupled with its 4.9% dividend yield, these numbers infer that the stock can produce total returns of 7.9% in the long term. This rate of return is more than enough to help you grow your financial nest egg. According to my calculations, an investment of £200 a month growing at a rate of 7.9% per annum could grow to be worth as much as £300,000 after 30 years.  I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Rupert Hargreaves owns no share mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. See all posts by Rupert Hargreaveslast_img read more

"I think the GSK share price could help you retire early"