Mowi – Pricy, but high quality

Mowi – Pricy, but high quality

I add 50 shares in my position in Mowi ASA, which adds 520 NOK to my annual dividend income.

The current dividend yield is 4.7 %, which is low compared to their historic dividend yield. The lower yield is due to the sharp increase in the share price the past years, but I believe the company will increase its dividend going forward (quarterly dividend of 2.6 NOK per share at the moment).

The shares trade ex. div on friday 30 August 2019

Mowi, formerly known as Marine Harvest, is by far the world’s largest fish farming company with operations in Norway, Chile, UK, Canada, Ireland and the Faroes.

Increasing population worldwide and the need to increase the food supply gives farming of atlantic salmon a favourable demand-scenario. The World Bank estimates that by 2030 approximately two-thirds of the consumption of seafood will be farm-raised. This gives rise to a ncie structural growth for companies like Mowi.

The combination of increasing population and the demand for more sustainable protein sources. Salmon is a efficient protein source and 1.15 kg of feed provides one kilo of salmon. Salmon is the livestock that utilizes the feed most efficiently – more than twice as efficient as pig and poultry. This is partly because salmon has the same body temperature as the water, and does not use energy to keep the body warm.

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