We recently published a list of the 10 High Growth Forever Dividend 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 high growth forever dividend stocks.
Dividend stocks have trailed the broader market over the past two years, largely due to investors favoring AI-focused companies. Still, experienced investors recognize the long-term value of dividend-paying stocks, supported by their strong historical performance. Short-term trends don’t diminish their importance. In fact, dividends have historically played a major role in total returns, accounting for about 31% of the broader market’s monthly total return from 1926 through February 2025, according to S&P Dow Jones Indices.
Dividend stocks have been performing well this year, even as broader markets faced turbulence. Wall Street took a hit recently amid rising fears about the economic fallout from President Donald Trump’s expanding trade war. The three major US indexes posted sharp declines, wiping out much of the prior session’s gains, as escalating tensions between the US and China overshadowed positive economic reports and progress in trade talks with Europe. The S&P index is down by over 8% since the start of 2025, whereas the tech-heavy NASDAQ has declined by over 13%. On the other hand, the Dividend Aristocrats Index, which tracks the performance of companies with 25 consecutive years of dividend growth, has recorded a decline of nearly 3%.
This highlights how dividend stocks tend to perform more steadily during market downturns—a trend backed by historical data. S&P Dow Jones Indices reports that, over time, the Dividend Aristocrats have delivered stronger risk-adjusted returns than the broader market, with lower volatility. These stocks have offered solid downside protection, outperforming the S&P index in about two-thirds of the market’s down months and roughly 44% of its up months. They’ve also experienced smaller drawdowns compared to the overall index, reinforcing their defensive appeal. In addition, during market downturns, the Dividend Aristocrats delivered an average excess return of 0.87% over the broader market. From December 29, 1989, to February 28, 2025, these stocks showed a market beta of 0.8, indicating lower volatility and stronger resilience compared to the overall market.
Analysts pointed out that the historical performance of dividend equities continues to shape a favorable outlook for the current year. A recent report from J.P. Morgan suggested that global equities may be entering a strong phase of dividend growth—driven not only by a cyclical rebound in payouts but also by a sustained structural momentum. While global dividends per share have grown at an average annual rate of 5.6% over the past two decades, projections now indicate an acceleration to 7.6% in the coming years.
The report emphasized that the most promising opportunities in the dividend space lie with so-called “Compounders”—companies with a consistent track record of increasing dividends over time, backed by solid earnings growth. Nearly half of the strategy focuses on these firms, which are also seen as powerful contributors to alpha generation within 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 and dividend growth streaks of at least 10 years. The final 10 picks are those with a five-year revenue growth rate exceeding 5%. 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) is an American multinational pharmaceutical company that offers a wide range of related services and products. The GLP-1 agonist market appears to be entering a transformative phase, presenting Eli Lilly with a significant opportunity to strengthen its position over the next year. Industry analysts project that annual sales for these in-demand treatments could reach as much as $150 billion by 2030. Currently, the space is largely controlled by just two major players—Novo Nordisk and Eli Lilly. According to estimates from Novo Nordisk, Eli Lilly currently holds about 34% of the market share.
One of the key treatments drawing investor attention this year is orforglipron, an oral, once-daily drug under development by Eli Lilly and Company (NYSE:LLY) for weight management and related health conditions. While initial trial results have been encouraging, the upcoming findings from phase 3 trials—due in the near future—will play a pivotal role in shaping the drug’s path toward potential regulatory approval.
Eli Lilly and Company (NYSE:LLY) is expected to publish data from several late-stage studies throughout the year, evaluating orforglipron’s impact on conditions such as diabetes, obesity, and sleep apnea. The first of these trials is anticipated to conclude in April.
Eli Lilly and Company (NYSE:LLY) is one of the best high growth dividend stocks as the company has raised its payouts for 11 years in a row. In addition, the company has never missed a dividend in 139 years. Its quarterly dividend currently sits at $1.50 per share for a dividend yield of 0.82%, as recorded on April 13.
Overall, LLY ranks 3rd 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.
