10 Most Promising Dividend Stocks According to Hedge Funds

3. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 106

Eli Lilly and Company (NYSE:LLY) is an Indiana-based pharmaceutical company that manufactures and develops a wide range of medicines for serious ailments. The stock has performed exceptionally well in recent years, driven by the success of its glucagon-like peptide-1 (GLP-1) receptor agonist drug portfolio. In the past 12 months, LLY has surged by over 25.6%.

In fiscal Q4 2024, Eli Lilly and Company (NYSE:LLY) generated $11.4 billion in revenue, reflecting a 20.5% year-over-year increase. The growth was primarily fueled by strong performances from Mounjaro and Zepbound, along with a notable 17% increase in non-incretin revenue. This overall expansion, driven by its oncology, immunology, and neuroscience segments, was compared to Q3 2023 results.

Aristotle Atlantic Partners, LLC made the following comment about LLY in its Q3 2024 investor letter.

“Eli Lilly and Company (NYSE:LLY) is a leading pharmaceutical company that develops diabetes, oncology, immunology and neuroscience medicines. The company generates over half of its revenue in the U.S. from its leading drugs Trulicity, Verzenio and Taltz. The company operates in a single business segment: human pharmaceutical products.

Eli Lilly has a deep pipeline in treatment areas focused on metabolic disorders, oncology, immunology and central nervous system disorders. Currently, there are two phase-three assets: orforglipron, an oral GLP-1, and retatrutide, a triple incretin agonist, which could possibly expand upon the potential success of Mounjaro. We believe that Mounjaro has the potential to commercialize beyond Type 2 diabetes and obesity, potentially in the areas mentioned above of heart disease, sleep apnea, fatty liver disease and chronic kidney disease. We believe the premium valuation is supported by this outsized growth profile.”

In December 2024, Eli Lilly and Company (NYSE:LLY) declared a 15.4% hike in its quarterly dividend to $1.50 per share. This marked the company’s 11th consecutive year of dividend growth, which makes LLY one of the most promising stocks that pay dividends. The stock supports a dividend yield of 0.74%, as of January 30.

The number of hedge funds tracked by Insider Monkey holding stakes in Eli Lilly and Company (NYSE:LLY) increased to 106 in Q3 2024, from 100 in the previous quarter. The total value of these holdings now exceeds $18.5 billion.