13 Best Dividend Growth Stocks With 10%+ Yearly Increases

3. Eli Lilly and Company (NYSE:LLY)

5-Year Average Annual Dividend Growth Rate: 15.05%

Eli Lilly and Company (NYSE:LLY) is an American pharmaceutical company that manufactures and develops a wide range of medicines for serious ailments. In Q4 2024, the company saw a 45% increase in revenue, reaching $13.53 billion, driven by strong volume growth from Mounjaro and Zepbound. Earnings per share (EPS) for the quarter doubled, rising 102% to $4.88 on a reported basis. Significant progress was also made in the company’s pipeline, including the US approval of Zepbound for moderate-to-severe obstructive sleep apnea in adults with obesity, as well as the approval of Omvoh for moderately to severely active Crohn’s disease.

Eli Lilly and Company (NYSE:LLY) has seen impressive growth in recent years, largely due to the success of its glucagon-like peptide-1 (GLP-1) receptor agonist drug lineup. In the past 12 months, the stock has delivered an over 19% return to shareholders. Aristotle Atlantic Partners, LLC highlighted LLY in its Q4 2024 investor letter. Here is what the firm has to say:

“Eli Lilly and Company (NYSE:LLY) contributed to performance in the fourth quarter. While shares underperformed, our underweight position versus the benchmark resulted in a positive contribution to relative returns. Lilly shares were weak following an uncharacteristic third quarter earnings miss driven by softer-than-expected sales of its blockbuster diabetes and obesity drugs. The company blamed this partly on wholesaler destocking. Lilly reinforced its view that end demand for the drugs remains strong.

Eli Lilly and Company (NYSE:LLY) currently pays a quarterly dividend of $1.50 per share, having raised it by 15.4% in December 2024. Through this increase, the company stretched its dividend growth streak to 11 years, which makes it one of the best dividend stocks on our list. As of February 8, the stock has a dividend yield of 0.68%.