Novo Nordisk’s Dividend Safety Amid Market Skepticism

Danish pharmaceutical giant Novo Nordisk has seen its stock price plummet by over 50% in the past year, despite its leading position in the burgeoning obesity drug market. The sector is projected to grow from $15 billion in global sales last year to $150 billion by 2035. Novo Nordisk's semaglutide, the active ingredient in blockbuster drugs Ozempic and Wegovy, faces intensifying competition, casting doubt on the company's growth trajectory.

Financial performance tells a different story. Revenue and profits have surged since 2023, when GLP-1 agonists gained widespread adoption for weight management. The company's Core diabetes expertise has proven a strategic gateway into obesity treatment, with its drugs now prescribed for chronic weight management. Market pessimism appears disconnected from these fundamental strengths.

The 1.4% dividend yield remains secure, backed by robust cash flows. By 2026, Novo Nordisk could regain investor favor as the obesity market matures and its pipeline delivers. The current valuation discount may present a long-term opportunity, assuming the company maintains its innovation edge in this high-growth therapeutic area.