Novo Nordisk's Dividend Story Is Changing -- Here's What Investors Are Missing
Novo Nordisk is offering an attractive 3.5% yield backed by a business where volume is the new focus.
Overview
Novo Nordisk (NYSE: NVO) is a large drug maker that built its business around treating diabetes. That was how it got into the GLP-1 weight-loss drug space. However, the opportunity for weight-loss drugs is much larger than the diabetes market. The company is working through a transition year, but if you are a dividend investor, that could be your opportunity to buy this high-yield stock. Here's what you need to know.
Novo Nordisk's dividend yield is 3.5%. That is much higher than the roughly 1% yield you'd collect from an S&P 500 index (SNPINDEX: ^GSPC) fund. And it is also more than twice the average pharmaceutical stock yield, which is roughly 1.5%. If you are looking for a high-yield drug stock, Novo Nordisk fits the bill.
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Originally published at www.fool.com.