Novo Nordisk Therapies Treat Degenerative Disorders

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the healthcare sector. 

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.

Today I'm reviewing a large-cap Danish biotechnology firm. Its name is Novo Nordisk A/S. Its trading ticker symbol is NVO.  

Novo Nordisk A/S is a healthcare company. It is engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The company’s business segments include, diabetes and obesity care, and biopharmaceuticals.

It operates in two segments, Diabetes Care and Obesity, and Biopharmaceuticals. The Diabetes Care and Obesity segment provides insulins, GLP-1 and related delivery systems, and oral anti-diabetic drugs and obesity. 

The Biopharmaceuticals segment offers products in the areas of hemophilia care, growth hormone therapy, and hormone replacement therapy. Novo Nordisk A/S has a research and licensing agreement with DUKE National University Singapore Medical School to develop stem cell-based treatments for chronic heart failure and age-related macular degeneration, as well as a research collaboration with Kallyope Inc. 

The company markets and distributes its products through distributors and independent agents. Novo Nordisk A/S was founded in 1925 and is headquartered in Bagsvaerd, Denmark.

I use three key data points to gauge the value of any dividend equity or fund like Novo Nordisk (NVO): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

NVO Price

Novo's price was $46.07 per share at yesterday's market close. A year ago its price was $44.39 for a gain of $1.68 per share in the past year.  

Assuming Novo's price will continue to trade in the range of $40.00 to $60.00 next year, its price could grow another $1.68 from $46.07 to $47.75 by June 27, 2019. 

NVO Dividends

Novo's most recently declared semi-annual dividend was $0.81 per share paid April 3. That $0.81 dividend is part a twice a year annual payout totalingand estimated $1.28 for 2018 which yields 2.77% at yesterday's $46.07 closing stock price.  

Gains For NVO?

Novo's $1.68 estimated year over year price gain plus an anticipated dividend of$1.28 makes a projected gross annual gain of $2.96 per share, which will be reduced by the costs to trade those shares.  

A little over $1,000.00 invested today at the $46.07 price buys 22 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.45 per share.

Taking that $0.45 brokerage cost out of the estimated $2.96 gross gain per share leaves a net gain of $2.51 X 22 shares = $55.22 or a 5.5% potential net gain on a $1,013.54 investment.

Therefore, Novo Nordisk A/S (whose ticker symbol is NVO), now shows a possible 5.5% net gain including a 2.77% dividend yield. 

Two analysts cover this stock:

One says "buy" NVO.

One says "hold" NVO shares.

Their two analyst consensus recommendation is 2.0 or "outperform" and their price target is$52 or $4.25 over my $47.75 year over year target.

Y Charts rates NVO "neutral" for an overall "Y" rating. Y Charts also shows "average" for a Value score of 7 out of ten points. And YCharts ranks NVO "strong" with 10 out of 10possible Fundamental points. Y Charts Historic Valuation score for NVO is 18.28% undervalued at a $56.37 historic valuation.

You could look at all those numbers like this: Novo Nordisk (NVO ) has made money, is making money, and could net a 5.5% to 10% net gain next year including a 2.77% annual dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Novo Nordisk (NVO) is worth your time and money.

Disclosure: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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