Why Novartis (NVS) is a Top Dividend Stock for Your Portfolio

Company Overview - Novartis (NVS) is a medical stock headquartered in Basel, with a price change of 13.93% so far this year [3] - The company currently pays a dividend of $2.52 per share, resulting in a dividend yield of 2.27%, which is slightly below the Large Cap Pharmaceuticals industry's yield of 2.53% and above the S&P 500's yield of 1.69% [3] Dividend Performance - The current annualized dividend of $2.52 represents a 3.7% increase from the previous year [4] - Over the past five years, Novartis has increased its dividend five times, averaging an annual increase of 4.93% [4] - The company's current payout ratio is 31%, indicating that it pays out 31% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Novartis expects solid earnings growth, with the Zacks Consensus Estimate for 2025 at $8.51 per share, reflecting a year-over-year earnings growth rate of 8.96% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - Larger, established companies are more likely to offer dividends compared to tech start-ups or high-growth businesses [7] - Novartis is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]