Tuesday , May 30 2023

Stock Exchange Express – This dividend set is a chance of correction


Experienced investors look more like corrections or crashes as an opportunity than a dilemma. They also know that it's just a part of it for a long time and it does not make much sense. Looking back, shopping was always useful for cheap reviews. However, long-term orientation (many years) is important. the Novo Nordisk (WKN: A1XA8R) currently trades close to 3% in dividends (2019) (2018.11.01) and has been steadily increasing its dividends for years. Here you can find out what's in stock.

What distinguishes the company

Not just Novo Nordisk is a good dividend, but offers a lot. It has existed since 1923 and survived many crises. In addition, it is the world leader in anti-diabetes drugs today, but it also offers blood clotting, growth hormones and hormone replacement therapies.

Favorable ownership structure

Mostly, a good business development and a stable ownership structure come in handy. About 28.4% of Novo Nordisk's shares are founder of August Krogh (founder of today's Novo Nordisk). At the same time, they represent 75.9% of the voting rights as capital is divided into ordinary and preferential shares. This structure ensures the company's stability and long-term development prospects. In addition, other companies can not quickly accept or influence it.

Very good business and dividend development

For years, the company has paid not only dividends, but has also increased year by year. Many cyclically sensitive stocks should generally reduce their dividends over a critical period. Novo Nordisk is not affected yet.

This is only possible if yields are sustainably increased. Thus, over the past 10 years (2008-2017), Novo grew from 45.7 to 111.7 million Danish crowns, while profits rose from 9.66 to 38.13 million Danish crowns. Dividend per share increased from 0.64 to 7.58. Novo is not just a good dividend payment, it's also a good company and investment.

High profitability

In most cases, good companies can be found in terms of net margin and return on assets. At Novo Nordisk these values ​​were 34.1% and 37.3% last year. So business does not have to invest much money to grow. It is very profitable and this is finally reflected in price developments. In addition, the balance sheet shows a 48.7% equity ratio.

What else is talking about the stock

Novo Nordisk is not a small company despite growth. Currently it has approximately EUR 97 billion of market capitalization. It is also present throughout the world so it does not depend on individual regions. Strong product line continues to provide future growth. High entry barriers for products (competitive advantages, fasoros). The criterion that Warren Buffett attaches great importance to.

In 2018 the dividend yield is estimated at 2.87% and 2019 (2018.11.01) to nearly 3%. Last but not least, the stock can now be appreciated according to historical standards.

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Christel Welzel does not belong to these shares. Motley Fool recommends Novo Nordisk.

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