Dividend Talk EPS 274 | Small & Mid Cap Investing with Heavy Moat Investments
In this episode of Dividend Talk, we’re joined by Niklas from Heavy Moat Investments for a deep dive into European small- and mid-cap investing, moats, portfolio concentration, and how to think about quality businesses when valuations get stretched.
We kick things off with a packed dividend roundup, covering recent dividend hikes from Broadcom, Mastercard, Abbott Labs, Eli Lilly, WD-40, Zoetis, and more, with a strong focus on why healthcare has been so active lately. We also discuss Pfizer keeping its dividend flat, and what that signals for big pharma investors.
From there, we look at one of the biggest European investing stories of the week: Aegon moving its headquarters to the US. We break down what this means for European capital markets, valuation multiples, and whether companies leaving Europe is a symptom of deeper structural issues.
The core of the episode is our conversation with Niklas, where we explore:
What a “moat” really means — and why moats are not static
How he evaluates small and mid-cap European companies
Why insider ownership matters more than market cap
His approach to portfolio concentration vs diversification
How he uses hurdle rates, expected IRR, and quality scoring
When and why he decides to sell a stock
We also discuss several real-world examples, including:
InPost and the rise of parcel locker networks across Europe
EVS Broadcast, a Belgian hidden champion in live sports technology
Mensch und Maschine, Autodesk reselling, proprietary software, and dividend sustainability
Edenred, regulation risk, shareholder yield, and why pessimism may be overdone
Eurofins Scientific as a long-term compounder with strong capital allocation
To wrap up, we answer listener questions on:
Story vs fundamentals
The biggest financial red flags to watch for
AI in investing and portfolio analysis
The “right” number of stocks in a portfolio
Small-cap investing in Europe vs the US
As always, this episode is for entertainment purposes only and should not be considered financial advice.
Useful links:
- Continue the conversation with our community at Facebook or Discord
- 20 Deep Dives a Year &Library of 150 EU & US Dividend stocks at https://www.dividendtalk.eu
- Heavy Moat Investments | Substack