Meet the 1.4% Yield Dividend Stock That Could Soar in 2026

Core Viewpoint - Novo Nordisk, a leading player in the obesity drug market, has seen its stock price decline over 50% in the past year despite strong financial performance and growth potential in the industry [2][5]. Company Performance - Novo Nordisk's revenue and profits have surged since 2023, coinciding with the rising popularity of obesity drugs [5]. - The company's dividend is secure, being less than 25% of its estimated earnings for 2025 [5]. Market Position - Novo Nordisk's Wegovy (semaglutide) holds approximately 40% of the U.S. market for branded obesity drugs, with around 282,000 total prescriptions [8]. - Eli Lilly has surpassed Novo Nordisk in the U.S. obesity market, with an estimated 419,000 prescriptions for its drug Zepbound (tirzepatide) [7][8]. Competitive Landscape - Competition has intensified, including from telehealth companies selling compounded versions of semaglutide, which has affected Novo Nordisk's market share [9][10]. - Novo Nordisk acknowledges the impact of compounding on its business and has made leadership changes in response [11]. Product Development - Novo Nordisk is working on launching a Wegovy pill, which could appeal more to patients compared to injectable forms [12]. - In a phase 3 trial, patients using the Wegovy pill experienced an average weight reduction of 16.6% after 64 weeks, with hopes for FDA approval by the end of the year [13]. Future Outlook - Analysts have lowered long-term growth estimates for Novo Nordisk due to its slipping market share, but the obesity drug market is expected to grow significantly [14][17]. - The potential introduction of oral obesity drugs by both Novo Nordisk and Eli Lilly could create a substantial market opportunity, as the market may support multiple players [18].