1Wk·

Acquisition: Novo Nordisk

Today I purchased the second tranche of my $NOVO B (+1.6%) position. I’m currently planning one more purchase to build up my desired initial position. Once I’ve reached that level, I’ll continue to grow the position—like many of my investments—through a savings plan.

02.07

Novo Nordisk A/S Class B

Bought at €43.35

DividendenPapa

@DividendenPapa

1Mon·

New purchase: Novo Nordisk

Last week I built up my first position in $NOVO B (+1.6%) built up.

I am well aware that the euphoria surrounding the share has waned considerably in recent months. Competition in the market for obesity and diabetes drugs has increased and market shares have shifted accordingly. This is probably one of the main reasons for the weaker share price performance in recent months.

Nevertheless, I still consider the market to be extremely attractive. Even if $NOVO B (+1.6%) no longer occupy the dominant position of recent years, I believe that the overall market is growing so strongly that even a smaller market share than today can still represent a very interesting business.

In addition, the company has a strong balance sheet, high margins, impressive profitability and a long history of increasing dividends. As a dividend investor in particular, I really like the combination of operational growth and continuously rising dividends.

For me, the current entry is therefore not a bet that $NOVO B (+1.6%) that the company will regain market share, but rather that it will remain a significant winner in the long term, even in a much larger market.

~ No investment advice ~

02.06

Novo Nordisk A/S Class B

Bought at €37.90

9 Comments

G_Capital@G_Capital

1Wk

I've already filled my position with 400 shares. In my opinion, it's a worthwhile investment—if you're patient. …I also think we're seeing a strong bottom forming here now. …The price is now creeping upward very slowly.

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DividendenPapa@DividendenPapa

1Wk

@G_Capital I agree. You have to be willing to invest some time. But since I generally always try to invest for the long term, that works for me.

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G_Capital@G_Capital

1Wk

@DividendenPapa …we're going to have a lot of fun with this number!

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Markus@MarkusF

@G_Capital I'd be up a solid 33% if I sold.

But yeah, in my opinion, it's still undervalued.

I bought it when the stock dropped to a single-digit P/E ratio and people here were calling the buyers crazy ;)

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G_Capital@G_Capital

@MarkusF …it’s creeping very slowly toward 50. …once it hits 50, things start moving fast, in my opinion 😉

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Pleni70@Pleni70

1Wk

I've also bought 737 shares over the past few months and am already up 11%. Novo is definitely picking up steam again. It's part of my income portfolio.

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Smudo@Smudeo

1Wk

But what about Dividend Papa Invest?
Do you see dividend yields here again in the future?

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G_Capital@G_Capital

1Wk

@Smudeo …the outlook looks good!

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DividendenPapa@DividendenPapa

1Wk

@Smudeo Good question. 😊 While the current dividend yield wasn’t the main reason for my purchase, I do think it’s actually quite attractive right now when viewed in a historical context. What’s much more important to me is that $NOVO B has historically shown a very strong dividend growth rate.
In the short term, dividend growth could be somewhat more moderate due to increasing competition. In the long term, however, I remain confident that the company will continue to generate rising profits and, consequently, further growing dividends. That’s exactly why $NOVO B fits well into my strategy, despite the current challenges.

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