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5 Megatrend Plays Offering Big Payouts

These companies offer long-term growth and immediate income

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Eli Lilly & Co.

Eli Lilly 185 5 Megatrend Plays Offering Big PayoutsDividend Yield as of 7/8: 3.9%

America’s population is aging rapidly, and our health problems are booming across the age spectrum.

That’s where Big Pharma comes in.

A recent study from the Mayo Clinic showed that nearly 70% of Americans are on at least one prescription drug, while more than half have at least two prescriptions. One big player in that arena, of course, is Eli Lilly & Co. (LLY) — the company that first mass-produced penicillin, the polio vaccine and insulin.

The next big thing for Lilly could be its diabetes drug dulaglutide, which has shown better results in recent late-stage trials than rival drugs from Bristol-Myers Squibb (BMY) and Merck (MRK). That’s a big breakthrough, considering estimates show that more than 25 million folks in America alone have diabetes, while nearly 2 million new cases were reported in 2010. LLY also has a second drug, empagliflozin, that has shown success when used with insulin.

To top it off, Eli Lily has been rewarding income investors for more than a century. While its dividend growth isn’t great — LLY recently announced that it will maintain its quarterly 49-cent dividend, or the same rate it has paid since 2009 — that still gives Eli Lilly shares a yield of nearly 3.9% at current prices.


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/5-megatrend-plays-offering-big-payouts/.

©2014 InvestorPlace Media, LLC

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