We recently published a list of the 10 High Growth Dividend Paying Stocks to Invest in. In this article, we are going to take a look at where Eli Lilly and Company (NYSE:LLY) stands against other profitable dividend stocks.
Amid growing concerns about economic growth and President Trump’s tariffs, investors have been seeking safer investment options. In this environment, dividend stocks have gained significant traction, offering a defensive strategy while also providing steady passive income. Research from Ned Davis suggested that the tougher conditions facing the broader market this year could set the stage for dividend-paying stocks to perform well. The S&P Dividend Aristocrats Index, though it declined by over 8% in 2025 so far, is outperforming the wider market, which has fallen by more than 15% since the start of the year. Ned Davis’s Clissold and his team made the following comment about dividend investing in this environment:
“One would expect that companies that pay dividends are more stable and have lower growth rates. As a result, they should rally less in up markets and decline less in down markets. In other words, they have lower betas than non-dividend-payers. … As a group, dividend-payers have a beta of 0.99 versus 1.11 for nonpayers.”
Over the years, dividend stocks have proved their mettle because of strong balance sheets, stable businesses, and sound financials. These traits become even when important when the market is going through a rough stretch. Franklin Templeton noted that dividend-paying stocks are attractive because they help cushion market downturns while still offering strong growth potential. Over time and across different regions, dividend strategies have shown defensive characteristics. The report highlighted that from January 2022 through December 2024, these stocks experienced lower volatility and smaller declines than the broader market, whether looking globally, in the US, or across Europe. Notably, when concerns over inflation and rising interest rates flared up again in August, dividend stocks remained relatively resilient.
Considering the growing investor appetite for dividend stocks, more and more companies have initiated their dividend policy in recent times. Tech companies, which are usually associated with growth-oriented strategies, have also broached this territory and launched their dividends last year. They see dividends as a useful addition to share repurchase programs. While tech stocks currently offer relatively low dividend yields, the overall payouts are quite large—with J.P. Morgan projecting that just three major companies alone could return around $17 billion to shareholders over the coming year.
This trend marks an important development in the market. According to the report, the most promising dividend investments lie in “Compounders”—companies known for steadily raising their dividends over time. These firms, which make up nearly half of the strategy, are backed by consistent earnings growth. They not only offer dependable income but also form a strong base for achieving long-term outperformance in investment portfolios. Given this, we will take a look at some of the best high growth stocks that pay dividends.
An array of pharmaceutical pills with the company’s logo on the bottle.
Our Methodology
For this list, we screened for dividend stocks with sound financials and robust balance sheets. From that group, we picked companies that achieved positive revenue growth in the past five years. The final 10 picks are those with a five-year revenue growth rate exceeding 10%. The stocks are ranked in ascending order of their revenue growth rates.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Eli Lilly and Company (NYSE:LLY)
5-Year Revenue Growth: 15.08%
Eli Lilly and Company (NYSE:LLY) ranks fifth on our list of the best high growth stocks that pay dividends. The American multinational pharmaceutical company offers a wide range of related services and products to its consumers. The company offers a quarterly dividend of $1.50 per share and has a dividend yield of 0.82%, as of April 8. It holds one of the strongest dividend policies in the market, having paid regular dividends for 139 consecutive years and growing its payouts for 11 years in a row.
A major drug that investors will be watching closely this year is orforglipron, a once-daily oral treatment being developed by Eli Lilly and Company (NYSE:LLY) for weight loss and other health conditions. While early trial data has shown promise, the upcoming results from phase 3 studies—expected in the coming months—will be crucial in determining the drug’s chances of gaining regulatory approval.
Throughout the year, Eli Lilly plans to release data from several phase 3 trials assessing orforglipron’s effectiveness in treating diabetes, obesity, and sleep apnea. The first of these studies is projected to wrap up in April.
In the fourth quarter of 2024, Eli Lilly and Company (NYSE:LLY) reported a significant revenue jump of 45% year-over-year, reaching $13.53 billion, driven by strong demand for Mounjaro and Zepbound. Earnings per share more than doubled, increasing by 102% to $4.88. The company also continued strengthening its product pipeline, gaining U.S. approval for Zepbound as a treatment for moderate-to-severe obstructive sleep apnea in adults with obesity, as well as approval for Omvoh to treat moderately to severely active Crohn’s disease. It is one of the best high growth stocks to buy as the company has grown its revenue by over 15% in the past five years.
Overall, LLY ranks 5th on our list of the best high growth stocks that pay dividends. While we acknowledge the potential of LLY as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than LLY but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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Disclosure: None. This article is originally published at Insider Monkey.
