FatCamera Introduction Investing in dividend growth stocks often means investing in high-quality businesses. Zoetis Inc. ( NYSE: ZTS ) is a great company and an undisputed dividend growth beast.
I am impressed with the speed at which the company is growing its dividend, and I am confident that ZTS can continue to do so in the future. Maybe not at the same growth rate as now, but I certainly expect double-digit dividend growth for a long time. In February, I wrote my first article about ZTS, where it was already clear that it is a quality company, but in my opinion, too richly valued.
However, there was some negative news about their osteoarthritis drug Librela and the presence of possible negative side effects. The stock price fell so much that it dipped below my calculated fair value of $154. Therefore, I chose to initiate a position and add ZTS to my personal dividend growth portfolio.
Share price development (YCharts) This is what CEO Kristin Peck had to say about the safety of Librela in the Q1 2024 earnings call. It has been used for over three years across the globe and over 14 million dogs and it's approved in over 50 countries. And if you overall look at the rate of reported adverse events, it's about 18% per 10,000 or 0.
18% globally. And I think it's important to keep in mind that no single adverse event is classified under the EMEA guidelines as more than rare, which is more than 1 to 10 out of 10,000. So we remain very confident in the safety and efficacy of this p.
