![]() Investors will keep seeing high-terrain dividend growth in line with the company's EPS growth. The current yield is not very attractive at 1.1%, but it seems safe with a payout ratio below 50% and much room to grow. The erratic pattern in the graph below is associated with the two different size payments and the fact that the dividend is paid in Danish Krone and exchanged for US Dollars. ![]() The company pays its dividend twice yearly, with the second payment significantly increasing. The company is a dividend aristocrat that has paid an increasing dividend for more than 25 years. In the future, as seen on Seeking Alpha, the analyst consensus expects Novo Nordisk to keep growing EPS at an annual rate of ~21% in the medium term. The margins have increased as the company cut costs and increased drug prices due to high demand, mainly for Ozempic. The EPS grows higher than the sales as it enjoys both the aggressive buyback plans and the improvement in the company's margins. The company increased its EPS by almost 150% over the last decade. The EPS (earnings per share) has grown much faster. As seen on Seeking Alpha, the analyst consensus expects Novo Nordisk to keep growing sales at an annual rate of ~18% in the medium term. New drugs in the company's pipeline will also add to future sales. The company keeps growing by reaching more patients for its obesity care and diabetes treatment and increasing its drug prices. Most of that increase happened in the previous 2-3 years when the company enjoyed growth from its obesity care drugs. The revenues of Novo Nordisk have increased by 85% over the last decade. ![]() The Rare Disease segment offers products in hemophilia, blood disorders, endocrine disorders, growth disorders, and hormone replacement therapy. The Diabetes and Obesity care segment provides products in insulins, GLP-1 and related delivery systems, oral antidiabetic products, obesity, glucagon, needles, and other chronic diseases. It operates in two segments, Diabetes and Obesity care, and Rare Diseases. Novo Nordisk, a healthcare company, researches, develops, manufactures, and markets pharmaceutical products worldwide. Seeking Alpha's company overview shows that: I will then try to determine if it's a good investment. I will examine the company's fundamentals, valuation, growth opportunities, and risks. I am using the same method to make it easier to compare researched companies. I will analyze Novo Nordisk using my methodology for analyzing dividend growth stocks. In this article, I will look into the company. ![]() Novo Nordisk is treating chronic diseases, making it even more resilient. Consumers are unlikely to stop their medical treatment, while they are likely to cut other spending. When the economy is slowing down and investors fear a recession may be looming, healthcare companies tend to be more resilient. The healthcare sector is attractive, Novo Nordisk ( NVO) in particular. I also use market volatility to my advantage by starting new positions to diversify my holdings and increase my dividend income for less capital. I often add to my existing positions when I find them attractive. Joe Raedle/Getty Images News IntroductionĪs a dividend growth investor, I seek new investment opportunities in income-producing assets.
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