I'm sticking with my investment in NU Holding; a P/E ratio of 17.8 isn't too expensive from a historical perspective, and the PEG ratio stands at an attractive +0.67, driven by double-digit earnings growth over the next two years. In addition, the company will begin paying dividends starting next year.
@Tenbagger-Capital Aren't those just expectations? If that's been confirmed, I find it hard to believe—especially if you're looking to expand into the U.S.
@topicswithhead Well, whether or not the mini-dividend pays out. Anyone investing in NU probably isn't a dividend investor anyway, but is in it for growth.
@topicswithhead It will definitely be worthwhile in the long run. However, despite the expansion, I don't think a dividend is out of the question. Some Scandinavian banks are also continuing to expand in Europe and still pay a relatively high dividend.
@Tenbagger-Capital Sure, in principle, but I don't see the point. Why not just grow faster and strengthen the balance sheet with 40% growth? I don't think the Finns are like that. Revolut doesn't pay any either, and those two are way more relevant here than your Finns 😂
@topicswithhead They’re buying back shares, after all—perhaps it would make more sense to use the dividend payout to buy back even more shares. But I think they’re starting now with an annual dividend increase to attract long-term dividend investors in a few years’ time. Just as most major banks do. Take a look at UniCredit—despite the acquisition of Commerzbank, the dividend remains unchanged.
