1 Reason Why I'd Hold This Weight‑Loss Drug Leader Through Any Market Crash

By Reuben Gregg Brewer – Feb 25, 2026 at 1:00PM ESTKey PointsThe big news around Novo Nordisk for the past couple of years has been about GLP-1 drugs.Looking back in its history, however, the longer-term story is about its role in treating diabetes.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: NVONovo NordiskMarket Cap$130BToday's Changeangle-down(-1.71%) $0.66Current Price$37.93Price as of February 25, 2026 at 1:51 PM ETAlthough pegged as a weight-loss stock, this drug maker's core business has long been diabetes.Novo Nordisk (NVO 1.71%) and Eli Lilly (LLY 0.98%) are locked in a battle around GLP-1 weight-loss drugs. It is a huge potential market, and the new class of drugs is very important. However, Novo Nordisk's story is much bigger than weight loss. Here's why it could be a long-term hold no matter what happens in the market, or with GLP-1 drugs. Novo Nordisk made insulin before GLP-1 drugs Novo Nordisk is one of the world's largest producers of insulin, a vital medication for those with diabetes. Generally speaking, when you take insulin, you need it regularly. As such, Novo Nordisk has a very attractive recurring revenue stream. That's an important foundation for the business. Image source: Getty Images. One area where this pharmaceutical company's foundation shows up is in its dividend payout ratio. Despite falling behind Eli Lilly in the GLP-1 weight-loss drug space, Novo Nordisk's trailing 12-month payout ratio is a very comfortable 40%. In fact, it has never risen above 50%, even during the deep 2007 to 2009 recession. Meanwhile, the dividend yield is well above the market at 3.9%. For reference, the average pharmaceutical stock has a yield of 1.7%. So the high yield here is well supported, and that's largely thanks to the company's strong diabetes business. GLP-1 drugs are important, too That said, investors shouldn't ignore that Novo Nordisk is also a GLP-1 drug stock. Eli Lilly has taken the lead, but Novo Nordisk remains an important player in the new drug niche. Notably, it recently launched the first GLP-1 pill, which should help it regain market share from Eli Lilly, at least in the short term. People prefer pills over shots, for obvious reasons. ExpandNYSE: NVONovo NordiskToday's Change(-1.71%) $-0.66Current Price$37.93Key Data PointsMarket Cap$130BDay's Range$37.68 - $38.2352wk Range$37.68 - $91.90Volume1.7MAvg Vol22MGross Margin80.90%Dividend Yield4.47% The takeaway from Novo Nordisk's development of a GLP-1 pill is that it remains an innovative drug maker. The excitement around weight-loss drugs is so high that investors may be overlooking the company's long-term opportunities and fundamental business strengths.

All Wall Street is seeing is the fact that Eli Lilly's GLP-1 drugs are performing better in the market right now. Novo Nordisk's strong core business and ongoing innovation in a newly developing drug niche suggest this financially strong dividend stock is an attractive holding, no matter what the market is doing. Indeed, consumers are still going to need insulin during a bear market and people will probably still be looking to lose weight, too.Read NextFeb 25, 2026 •By Prosper Junior BakinyCould Novo Nordisk Help Turn $100,000 Into $1 Million in the GLP‑1 Gold Rush?Feb 23, 2026 •By Emma NewberyStock Market Today, Feb. 23: Novo Nordisk Plunges 16% After Obesity Drug Falls ShortFeb 23, 2026 •By Rich SmithWhy Novo Nordisk Stock Just CrashedFeb 23, 2026 •By Rich Smith1 Reason I'm Seriously Considering Novo Nordisk as a Buy‑and‑Never‑Sell Obesity StockFeb 22, 2026 •By Justin Pope2 Unstoppable Dividend Stocks to Buy Right Now for Less Than $200Feb 20, 2026 •By Prosper Junior BakinyNovo Nordisk Stock Investors Just Got Great News From Eli LillyAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedNovo NordiskNYSE: NVO$37.93 (1.71%) $0.66Eli LillyNYSE: LLY$1031.94 (0.98%) $10.21*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.