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Wed, December 18, 2024

Eli Lilly Is Putting Dividend Growth Stocks to Shame With Yet Another Huge Increase to Its Payout


Published on 2024-12-18 10:41:10 - The Motley Fool
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  • What Eli Lilly ( LLY -0.05%) is doing is far more impressive. The company has been increasing its dividend at a high rate, and with a bright future ahead, there could be more generous rate hikes to come. While many investors may buy it for its growth potential, here's why it can also make for an exceptional dividend stock to buy and hold.

The article from The Motley Fool discusses Eli Lilly's impressive performance in 2024, highlighting its significant stock price increase and its impact on dividend growth stocks. Eli Lilly, traditionally known for its dividends, has shifted focus towards growth, particularly with the success of its new weight-loss drug, Zepbound, and other treatments like Mounjaro for diabetes. Despite not being a high-yield dividend stock, Eli Lilly's stock has soared, making it a standout in the pharmaceutical sector. The article notes that while Eli Lilly's dividend yield remains low at 0.7%, the company's strategic pivot towards high-growth opportunities has led to substantial capital appreciation, overshadowing its dividend growth. This shift has put traditional dividend growth stocks in the spotlight, as investors weigh the benefits of steady income against the potential for significant capital gains from growth-oriented companies like Eli Lilly.

Read the Full The Motley Fool Article at:
[ https://www.fool.com/investing/2024/12/18/eli-lilly-is-putting-dividend-growth-stocks-to-sha/ ]
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