Eli Lilly & Co (LLY) DIvidends Date & History

Key Takeaways

• Eli Lilly and Company (LLY) offers a forward dividend yield of 0.72%, reflecting its status as a high-growth pharmaceutical leader.
• The company pays a quarterly dividend of $1.73 per share, annualizing to $6.92, following a 15% increase announced in December 2025.
• LLY has raised its dividend for 11 consecutive years, with a 5-year growth rate of approximately 15%.
• Payout ratio stands at 26.14%, indicating strong sustainability backed by robust earnings and free cash flow (FCF, cash generated after capital expenditures).
• Compared to pharmaceutical peers, LLY's yield is modest but supported by superior growth prospects.

Dividend Overview

Eli Lilly and Company (LLY), a leading pharmaceutical firm known for drugs like Mounjaro and Zepbound, maintains a quarterly dividend policy. The current quarterly payout is $1.73 per share, payable on March 10, 2026, to shareholders of record on February 13, 2026 (ex-dividend date February 13, 2026). This annualizes to $6.92 per share, yielding 0.72% based on recent stock prices. While the yield is modest, LLY qualifies as a dividend growth stock, prioritizing reinvestment in R&D and expansion over high current income. The company has consistently increased payouts, appealing to investors seeking compounding returns rather than immediate high yields.

Dividend History and Growth

Eli Lilly has paid quarterly dividends since 1972, with steady growth over decades. Annual dividends rose from $4.52 in 2023 to $5.20 in 2024 and $6.00 in 2025, driven by strong revenue from innovative therapies. The latest hike to $1.73 quarterly in 2026 marks a 15% increase from $1.50, extending an 11-year streak of annual raises. This reflects a long-term strategy of balancing shareholder returns with R&D investment (research and development), amid blockbuster drug successes. No cuts have occurred in recent history, underscoring payment consistency.

Dividend Sustainability and Payout Ratio

LLY's dividend sustainability is robust, with a payout ratio of 26.14%—well below 50%, leaving ample room for growth. Earnings comfortably cover dividends, and FCF provides strong support, with coverage exceeding three times the payout obligation. Debt levels are manageable relative to cash flows, bolstered by high-margin products. This low payout positions LLY to sustain and potentially accelerate increases amid projected earnings growth.

Dividend Compared to Industry Peers

In the pharmaceutical sector, LLY's 0.72% yield trails peers like Pfizer (PFE) at around 6%, AbbVie (ABBV) at 3.5%, Johnson & Johnson (JNJ) at 2.4%, and Merck (MRK) at 3%. LLY's lower yield stems from rapid stock price appreciation, prioritizing growth over income. However, its superior dividend growth rate and lower payout ratio offer a more defensive profile for long-term holders compared to higher-yield peers with elevated ratios.

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Is This Stock Attractive for Dividend Investors?

Eli Lilly and Company (LLY) suits dividend growth investors who prioritize compounding over current income, given its 11-year raise streak and double-digit historical growth. Its low 0.72% yield and 26% payout ratio appeal to those comfortable with modest yields in exchange for capital appreciation potential from innovative pipelines. Conservative long-term investors may value the sustainability and coverage metrics, though high-growth pharma volatility could deter strict income seekers favoring higher yields like PFE or ABBV. Overall, LLY fits portfolios blending growth and income, particularly for horizons exceeding five years.

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