Eli Lilly (LLY) Extends Dividend Streak to 11 Years—Proving Big Pharma Still Prints Money

Dividend dynasty: Eli Lilly just upped its payout for the eleventh straight year—because when you're minting cash from weight-loss drugs and insulin, why not?

The cash machine keeps humming

No surprises here. LLY’s board voted to shower shareholders with yet another dividend bump, flexing the kind of financial stamina that'd make a marathon runner jealous. The move screams confidence—or maybe just an obligation to keep the Wall Street gravy train rolling.

The cynical take

Let’s be real: this is textbook ‘keep the suits happy’ maneuvering. While Main Street frets over drug prices, Lilly’s dividend streak is basically a corporate flex—like dropping a stack of hundreds at a charity gala. Nice gesture, but let’s not pretend it’s altruism.

Bottom line? In a world where most yield plays are gasping for air, Lilly’s printing money like it’s 1999. Just don’t ask who’s footing the bill.

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Eli Lilly just declared that it will pay a dividend for this year’s third quarter of $1.50 a share. That’s up slightly from a previous quarterly distribution of $1.49. The Q3 dividend is payable on Sept. 10 to shareholders of record at market close on August 15.

Eli Lilly has steadily increased its dividend every year since 2014 at an average annual increase of 15%. The company’s payout ratio now stands at 43.74%, which means that a little less than 44% of the company’s profits are paid out to shareholders in the FORM of dividends.

Low Distribution Rate

While Eli Lilly’s annual dividend, or the the total amount of dividends paid to shareholders in a year, is $6, the company is known for having a low distribution rate. Currently, LLY stock has a dividend yield of 0.77%, which is below the average of 1.27% among companies listed on the benchmark S&P 500 index.

Analysts say the low dividend payout ratio is due to the fact that Eli Lilly is investing heavily in its future growth, particularly as it relates to the manufacturing of its weight-loss medications. At the same time, the low distribution means that Eli Lilly’s dividend is both SAFE and sustainable, and that the pharmaceutical company can likely keep raising it in coming years. LLY stock is up 3% this year.

Is LLY Stock a Buy?

The stock of Eli Lilly has a consensus Strong Buy recommendation among 19 Wall Street analysts. That rating is based on 16 Buy, two Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $999.57 implies 29.71% upside from current levels.