EP #201 | 3 European Companies with high ROIC | & NN Group becoming a Bank?

Dividend Talk

English - June 22, 2024 16:14 - 56 minutes - 130 MB
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Previous Episode: EP #200 - The Power of Consistent Dividend Growth Investing

Next Episode: EP #202 | Quarterly Dividend Portfolio Roundup | & What about Nike?!

Welcome to DividendTalk, where we dive into the latest news, strategies, and tips for dividend investors. In Episode 201, we're exploring three European companies boasting impressive Return on Invested Capital (ROIC).

News of the week:

- **Nationale-Nederlanden's New Venture**: Dutch insurer Nationale-Nederlanden is set to launch a digital bank next year. Joris from DGI shares his thoughts on this strategic move.

Main Topic:

Warren Buffett once said, "Leaving the question of price aside, the best business to own is one that can employ large amounts of incremental capital over an extended period at very high rates of return." In this episode, we break down what ROIC is, why it's crucial for investors, and how it's calculated. We also compare ROIC with other financial metrics like ROI and ROCE, and discuss the significance of comparing ROIC with a company's Weighted Average Cost of Capital (WACC).

We then discuss 3 European examples after the theoretical introduction.

Last but not least, we also discuss several of our listeners questions.

Tune in for insightful discussions and expert analysis on these topics and more in Episode 201 of DividendTalk!