| Today, we're doing something we've never done before. In this special "new year" edition of Wealthy Retirement, we're running a stock through the Safety Net model and The Value Meter... at the same time. Using these two popular methodologies in tandem - one for dividend safety, the other for valuation - can give us a more complete picture of whether a stock is worth investing in. Without further ado, here's the first-ever combined edition of Safety Net and The Value Meter... featuring a company that just made a potentially industry-changing announcement.
| Chief Income Strategist Marc LichtenfeldSafety Net | | | Now that the calendar has turned to 2026, lots of folks are making promises to themselves that they won't keep. However, one resolution just got much easier. Losing weight. GLP-1 (glucagon-like peptide-1) drugs have been game changers for patients and the pharmaceutical companies that make them. Now, oral GLP-1 drugs will again move the needle significantly for customers and drugmakers. Last week, Danish pharmaceutical giant Novo Nordisk (NYSE: NVO) received FDA approval for an oral version of Wegovy, which was previously available by injection only. The change to the company's financial picture will be momentous. We won't have the full 2025 figures until next month, but free cash flow is projected to come in at $7.7 billion, a 28% decline from 2024's $10.7 billion and 36% below 2023's total. However, because of the new approval, free cash flow is expected to jump 34% to $10.3 billion in 2026 and another 27% in 2027 to $13.2 billion. The sharp decline in 2025's free cash flow costs Novo Nordisk a couple of points on its dividend safety rating. But could the expected influx of cash "slim down" the risk of a dividend cut? |
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