Eli Lilly & Co.
Dividend 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.