How Eli Lilly (LLY) Balances Dividend Payouts With Long-Term Innovation

Eli Lilly and Company (NYSE:LLY) is included among the 11 Best Value Dividend Stocks to Buy Now.

Eli Lilly and Company (NYSE:LLY) , which has been around since the late 1800s, has built a strong track record in developing and selling drugs for diabetes, cancer, and immunology, including treatments for rheumatoid arthritis and other conditions.

Three of its products, Mounjaro, Zepbound, and Verzenio, make up 65% of the company’s second-quarter revenue of 15.6 billion dollars. These drugs address type 2 diabetes, obesity, and breast cancer, and each delivered revenue growth ranging from 12% to 172%. They continue to be the main drivers of the company’s sales momentum.

Eli Lilly and Company (NYSE:LLY) continues to spend heavily on innovation, with research and development costs increasing 23% from the prior year to 3.3 billion dollars in the second quarter. This represents the company’s largest expense category, accounting for over 21% of revenue.

In addition to strong earnings, Eli Lilly and Company (NYSE:LLY) has also been returning value to shareholders for years. The company has raised its dividends for 11 consecutive years and currently offers a quarterly dividend of $1.50 per share. The stock has a dividend yield of 0.83%, as of September 26.

While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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