The first week of 2016 certainly wasn’t kind to investors, quite a lot of my shares nosedived and the total return of my portfolio is once again barely in the green. My overweight position in energy and basic materials is to blame for this as these shares are all deep in the red. Looking back, I started buying this sector way to early but hindsight is 20/20 of course.
I started 2016 by buying 35 shares of Novo Nordisk (NOVO-B), the world leader in diabetes treatment. The annual report had been laying on my desk for a couple of months but once I took a close look at this firm I was so impressed by the firm’s financial performance and growth prospects that I decided to initiate a position.
You can read my analysis about Novo Nordisk over here:
Due to its low yield and the high dividend taxation, this purchase adds just 10.16EUR to my 2016 dividend income, but I anticipate the company will be able to grow its dividend at a good rate. There’s a tax treaty between Belgium and Denmark, but unfortunately this rate is not applied automatically so it’s not practical to recuperate the excess withholding tax.