December 04, 2025 a 03:31 pm
LLY: Dividend Analysis - Eli Lilly and Company
🔍 Eli Lilly and Company (LLY) represents a steadfast name in the pharmaceutical sector with over five decades of dividend issuance, illustrating a reliable growth trajectory. Despite a modest dividend yield, the company's current robust payout ratio suggests stability. With no significant dividend cuts or suspensions in recent history, it showcases a resilience first established in 1972.
Overview
📊 Understanding Eli Lilly's key dividend metrics conveys the company's extensive contribution to shareholder value through consistent dividends.| Element | Details |
|---|---|
| Sector | Pharmaceuticals |
| Dividend yield | 0.59% |
| Current dividend per share | 5.20 USD |
| Dividend history | 54 years |
| Last cut or suspension | None |
Dividend History
📈 A thorough examination of Eli Lilly's dividend history emphasizes its commitment to consistent dividend payments. The inclination towards incrementally raised dividends reflects a strong financial strategy.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 6.00 |
| 2024 | 5.20 |
| 2023 | 4.52 |
| 2022 | 3.92 |
| 2021 | 3.40 |
Dividend Growth
📈 The dividend growth figures are crucial as they reflect the long-term prosperity Eli Lilly offers to its investors. Positive growth indicators boost investor confidence in future payouts.| Time | Growth |
|---|---|
| 3 years | 15.21% |
| 5 years | 15.05% |
The average dividend growth is 15.05% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
📈 Evaluating payout ratios gives insight into how sustainable Eli Lilly’s dividends are over time. The data confirms steady payouts supported by both earnings and free cash flow.| Key figure | Ratio |
|---|---|
| EPS-based | 25.32% |
| Free cash flow-based | 51.75% |
These payout ratios indicate a responsible approach to dividends, suggesting dividends are well-covered by earnings and cash flows.
Cashflow & Capital Efficiency
📊 The efficiency and vitality of Eli Lilly's capital usage can be seen in the cash flow metrics, indicating solid capital management and profitability.| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 1.32% | -0.60% | 0.06% |
| Earnings Yield | 1.80% | 1.00% | 1.52% |
| CAPEX to Operating Cash Flow | 39.35% | 174.34% | 95.30% |
| Stock-based Compensation to Revenue | 1.30% | 1.84% | 1.43% |
With robust cash flows and capital efficiency strategies, Eli Lilly demonstrates a sustainable approach to managing investment capital.
Balance Sheet & Leverage Analysis
🔍 A thorough analysis of Eli Lilly's leverage and liquidity indicators reflects a competent capital structure with substantial debt management.| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 152.48% | 234.18% | 237.06% |
| Debt-to-Assets | 32.81% | 39.41% | 42.74% |
| Current Ratio | 1.05 | 0.94 | 1.15 |
The company maintains a stable financial structure with an emphasis on balancing debt and assets appropriately.
Fundamental Strength & Profitability
📊 Eli Lilly’s fundamentally profitable nature is mirrored by its return metrics and margins, underscoring efficacy in resource utilization.| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 58.64% | 48.65% | 74.62% |
| Net Margin | 21.88% | 15.36% | 23.51% |
| R&D to Revenue | 25.19% | 27.29% | 24.40% |
Eli Lilly's strategic focus on profitability and reinvestment into R&D facilitates continued growth and competitive positioning.
Price Development
Dividend Scoring System
🗣️ Analyzing various criteria, Eli Lilly’s dividend performance can be summarized as follows:| Criteria | Score | Scale |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
Rating
✅ Eli Lilly and Company exhibits a solid financial structure suitable for a dividend-focused portfolio. Its combination of stable dividends, strategic growth, reinforced by robust financial resilience, makes it an attractive holding for long-term income generation.
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