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AstraZeneca (LSE: AZN), Unilever (LSE: ULVR), and GSK (LSE: GSK) are some of the largest businesses in the FTSE 100. All are blue-chip companies that are popular with investors.
Wondering what kind of dividends they’re likely to serve up in the year ahead? Here’s a look at the dividend forecasts for 2025.
Ignore the low yield
Let’s start with pharmaceutical company AstraZeneca. Because it’s the largest business in the Footsie with a market cap of around £182bn.
Now, the dividend yield here isn’t high. Currently, analysts expect a payout of 327 cents for 2025 – a yield of 2% at today’s share price and at the GBP/USD exchange rate.
But I wouldn’t look at this low yield as a deal-breaker. This company has a brilliant track record when it comes to generating wealth for investors.
Looking ahead, I see potential for more attractive returns. Today, the company has a vast drug pipeline (189 projects) that includes oral weight-loss drugs (which I think could be huge if they come to market).
Of course, pharma companies face plenty of risks. Patent expiration and disappointing drug trial results are two that come to mind.
With the stock trading 10% off its highs on a forward-looking price-to-earnings (P/E) ratio of 16.5, however, I like the set-up today.
Returns of 10% a year
Moving on to consumer goods company Unilever, it’s forecast to pay out 190 euro cents for 2025. At today’s share price, that estimate equates to a yield of 3.3%.
This is another company with a magnificent track record when it comes to generating wealth for investors. Over the last decade, it has returned about 10% per year when dividends are factored in.
I wouldn’t be surprised to see similar kinds of returns from it over the next decade (despite the fact that the P/E ratio is elevated at 20). With plenty of exposure to the fast-growing Indian market, and a new management team driving efficiency gains, I see scope for decent revenue and earnings growth in the years ahead.
It’s worth noting that changing consumer preferences are a risk here. Today, the consumer goods market is evolving rapidly and new brands are capturing market share.
I’m backing Unilever’s trusted brands such as Dove and Hellmann’s – which have been around for decades – to remain popular with consumers, however.
A cheap stock
Finally, we have pharma company GSK. It’s forecast to pay out 64p for 2025. At today’s share price, we’re looking at a yield of around 4.3% – the highest of the three stocks.
Now, this stock is well below its highs at present. That’s because the company has been fighting a battle in relation to its heartburn drug Zantac (which some people claim causes cancer).
However, earlier this month, GSK settled 80,000 Zantac litigation cases (93% of total cases) for around $2.2bn. That clears up a lot of the uncertainty.
Of course, there’s still a bit of uncertainty linked to Zantac. But I like the risk/reward proposition now.
Currently, GSK has a P/E ratio of just 8.6 using the 2025 earnings forecast. That’s a low valuation (well below the healthcare sector average).
There are no guarantees that the stock will do well from here, of course. But at that valuation, I think it’s worth a closer look.