Invest in two top-dividend stocks for a long-term portfolio, even with an initial investment of only $100, and maintain these holdings for a decade.
Novo Nordisk, a Denmark-based pharmaceutical company renowned for its Ozempic and Wegovy products, has witnessed a shift in its financial outlook. The company's shares are currently priced at 14.1 times trailing earnings, indicating growth at a low single-digit percentage over the long run. This follows Novo Nordisk's reduction in its sales and operating earnings growth outlook for 2025. The company now anticipates revenue to rise between 8% and 14% this year, slower than the previously announced range.
Despite this, Novo Nordisk continues to offer an attractive dividend yield. With an average yield of 3.44% at recent prices, the company is a consideration for investors seeking passive income streams. Notably, Novo Nordisk has increased its annualized dividend payments by 120% from 2020 through 2024 in its native currency.
On the other hand, Brookfield Infrastructure, a company specializing in owning and operating critical infrastructure networks, presents a different investment opportunity. Its portfolio includes assets that provide energy and data transmission, making it a potentially safe investment in the field of artificial intelligence.
Brookfield Infrastructure's shares have seen a decline over the past three years, falling by about 15%. However, its dividend payout has risen by 18.5% over the same time frame. At recent prices, Brookfield Infrastructure offers an unusually large 4.3% dividend yield. The quarterly dividend payout for Brookfield Infrastructure is currently set at $0.43 per share.
Investing in Brookfield Infrastructure could potentially yield substantial dividend income over the long run. The company owns and operates networks that facilitate the flow of freight, passengers, data, water, and energy. Its diverse portfolio provides a level of stability that could make it an attractive choice for investors.
Brookfield Infrastructure and its associated entity, Brookfield Infrastructure Partners, offer relatively lower yields compared to Novo Nordisk, with average yields of 0.65% and 0.54% respectively at recent prices. However, $100 is sufficient to purchase a share of both companies.
The S&P 500 index has seen significant growth this year, increasing by 25.9% from April 4 through Aug. 8. Companies in the index offering high dividend yields include Munich Re, with an estimated dividend yield of about 4.3% based on a forecasted 22.00 € per share dividend for 2025.
It's important to note that the Wegovy shortage, which allowed independent compounding pharmacies to fill in the gap, has been declared ended by the Food and Drug Administration in February. This development could potentially positively impact Novo Nordisk's future earnings.
In conclusion, both Novo Nordisk and Brookfield Infrastructure present unique investment opportunities. While Novo Nordisk offers a higher dividend yield and potential for growth, Brookfield Infrastructure's focus on critical infrastructure networks could provide a level of stability and long-term dividend income. As always, it's crucial for investors to conduct thorough research and consider their individual financial goals before making investment decisions.
