Big pharma has endured a turbulent few years of cheap drug competition, pricing scandals and political pressures. UK behemoth GlaxoSmithKline (GSK) has been one of those hardest hit by the turmoil, so much so that many analysts have voiced concerns about its ability maintain its dividend: one of the highest yielding in the FTSE 100.
However in the wake of last month’s Brexit vote, the pharma giant has seen a 16 per cent share price rise. GSK generates more than 80 per cent of its revenue overseas and sells products that will be in high demand regardless of Britain’s place in Europe. So it looks well placed. But how solid is that dividend?