DrugmakerNovo Nordisk (
) has boosted its dividend sharply the past couple of years.
The annual dividend was recently raised 29% to the equivalent
of about $3.11 a share for holders of its U.S.-traded shares,
according to a filing with the U.S. Securities & Exchange
The dividend was increased 37% the previous year, and by 23%
the year before that.
Thanks to such beefy increases, Novo Nordisk has one of the
highest dividend growth rates in IBD's stock database. Despite
that, the annualized dividend yield works out to about 1%.
The Denmark-based company is one of the world's largest
producers of insulin, which is essential for many diabetes
Besides the dividend and solid customer base, another appeal
for income investors is Novo Nordisk's steady stock and earnings
The stock has been in a long advance since a major bottom four
years ago. It has formed a few bases and is working on another
In February, a delay in the approval for a long-acting insulin
candidate sent shares skidding.
The company's five-year Earnings Stability Factor is 4 on a
scale of 0 to 99, in which 0 represents the most steady
Its five-year EPS growth rate is 24%. Its five-year sales
growth rate is 11%, which is more or less in line with other
major pharmaceutical companies.
After it reported Q1 results on May 1, the company raised its
sales-growth forecast to 9%-11% from 8%-11%. It kept its
full-year profit forecast at a 10% increase.
After the latest results, analysts at DNB Markets noted they
expect "at least one more guidance upgrade in 2013" by