Why Eli Lilly (LLY) is Emerging as a Dividend Growth Leader in Pharma for 2025

Eli Lilly and Company (NYSE:LLY) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025.

An array of pharmaceutical pills with the company’s logo on the bottle.

In the past five years, the company has raised its payouts at an annual average rate of 16%. Its consistent track record makes it an appealing choice for investors focused on dividend growth, especially given the strength of its broader operations. A company’s ability to sustain dividends depends on its overall stability, and Eli Lilly stands out as one of the most solid players in the pharmaceutical space today. It holds a leading position in the rapidly expanding weight loss segment.

Eli Lilly and Company (NYSE:LLY) also has a promising pipeline, with several potential blockbuster drugs that could each generate over $1 billion in annual revenue. Its revenue and earnings have been rising at a pace that surpasses many of its peers, a trend expected to continue in the coming years. As a result, investors who remain patient could benefit from steady dividend increases as well as long-term stock gains.

On June 23, Eli Lilly and Company (NYSE:LLY) declared a quarterly dividend of $1.50 per share, which was in line with its previous dividend. Overall, the company has been growing its payouts for 11 consecutive years. As of July 17, the stock has a dividend yield of 0.77%.

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.

Disclosure: None.