ISA alert! I think GlaxoSmithKline is a great buy for both income and growth investing

first_img As an ISA investor, I’m always on the lookout for good stocks to buy. The Stocks and Shares ISA allowance enables me to receive dividends gross of tax. It also enables me to pay no capital gains tax if I sell a stock for a profit within the ISA wrapper. This makes it a great tool for both income and growth investing. Some investors think that income or growth investing are mutually exclusive. This really isn’t the case. You can buy a stock that pays out a dividend, but also has growth prospects. It’s true that some high-growth, early-stage firms may not pay a dividend to help retain profits within the business. Yet there are still plenty of growing firms that do. 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…Growth investing prospectsGlaxoSmithKline (LSE:GSK) is one of the largest pharmaceutical businesses in the world. It was formed by a merger of two companies in 2000, so isn’t tagged as an early-stage growth business. Yet due to the search for a vaccine, even a mature company like GSK has large share price appreciation potential.This particularly appeals to growth investors. Since April, GSK has teamed up with Sanofi in a vaccine push. Even though it looks unlikely that they’ll be the first to develop a vaccine, this doesn’t render it pointless. The partnership has arguably the largest network to distribute such a vaccine around the world. Only last week, GSK made a commitment to supply 200m doses to COVAX. This is a group of governments, health groups and others formed to help with the response to the virus. The bottom line is that it looks likely the GSK/Sanofi vaccine will be a large-scale product, with huge demand (assuming it works). From a financial point of view, this could be very profitable. As a result, investors would likely see growth in the share price of GSK into the medium term. New developments of this scale don’t happen that often, and so the move could be significant.Income prospectsAside from growth investing, income investors also find value in buying GSK. In a recent Q3 trading update, the dividend of 19p per share was flat compared to last year. This doesn’t surprise me, given that the quarterly results were mixed, with the highlight being an increase in operating profit to £1.9bn. The flat dividend versus last year should actually give comfort to income investors. The opportunity to cut the dividend going into the year-end is one companies have often used in the past, to boost balance sheets.The current dividend yield sits at 5.72%. This is very attractive when comparing it to the FTSE 100 average of 3.4%. When compared to the Bank of England base rate of 0.1%, it looks even more appealing. Having already considered the growth potential above, income investors can also potentially look forward to a profit aside from the dividend.Overall, I feel GSK is a solid buy for income and growth investing. At present, I feel it offers the best of both worlds, given the situation we find ourselves in with the virus. Enter Your Email Address Jonathan Smith | Tuesday, 10th November, 2020 | More on: GSK Simply click below to discover how you can take advantage of this. jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK 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. 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. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Our 6 ‘Best Buys Now’ Sharescenter_img Image source: Getty Images. Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… 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. ISA alert! I think GlaxoSmithKline is a great buy for both income and growth investing See all posts by Jonathan Smith Click here to get access to our presentation, and learn how to get the name of this ‘double agent’!last_img read more