Is Novo Nordisk a Top Dividend Stock?
Danish drugmaker Novo Nordisk (NYSE: NVO) is one of the world's largest pharmaceutical companies with a market capitalization of nearly $360 billion. It sports a diverse portfolio of insulin products, diabetes drugs, and obesity treatments. Novo Nordisk has been growing steadily over the years, thanks to its strong commitment to innovation in the area of metabolic disorders and expanding presence in emerging markets. But is Novo Nordisk a good dividend stock for income investors? Let's dig deeper to find out.
Novo Nordisk pays dividends twice a year, in March and August, based on its annual earnings. The dividend payout ratio, which measures the percentage of earnings that are distributed as dividends, has been hovering around 50% since 2017, indicating a balanced approach between rewarding shareholders and reinvesting in the business.
Novo Nordisk's dividend yield, which measures the annual dividend per share divided by the share price, is currently 1.1%. This is lower than the average yield of 2.28% for the healthcare sector and 1.54% for dividend stocks listed on the S&P 500. Moreover, Novo Nordisk's dividend growth rate hasn't been particularly impressive of late.
Source Fool.com
