NNGRY - NN Group: A 7% Starting Yield And Solid Dividend Growth Ahead
2024-05-26 09:42:23 ET
Summary
- Despite the increase in share price, NN Group still has the potential to be an excellent dividend growth investment.
- NN appears to be well positioned to benefit from expanding their insurance activities in Europe and the new Dutch pension system.
- The company generates enough capital to reward their shareholders with a total shareholder yield of at least 9.4% in the form of a growing dividend and share buybacks.
- Based on the dividend discount model, the fair value of NN is €52.30 per share, which is 16% undervalued compared to the current share price.
Investment thesis
At the moment, NN Group (NNGPF)(NNGRY) is one of the largest positions in my portfolio. Last year, there were plenty of opportunities to buy NN at a really attractive price. As can be seen, even after the settlement (announced on January 9), there was still sufficient upside when it comes to the share price....
NN Group: A 7% Starting Yield And Solid Dividend Growth Ahead