January 29, 2026 a 03:32 pm
LLY: Dividend Analysis - Eli Lilly and Company
Eli Lilly and Company exhibits a strong dividend history with consistent growth over the years. Its commitment to returning value to shareholders is evident, marked by a long-standing record of stability and growth. Investors looking for a reliable dividend-paying stock might find Eli Lilly and Company an attractive addition to their portfolio, especially with its robust financial metrics that support sustainable dividend payouts.
📊 Overview
| Metric | Value |
|---|---|
| Sector | Pharmaceuticals |
| Dividend yield | 0.61 % |
| Current dividend per share | 5.20 USD |
| Dividend history | 55 years |
| Last cut or suspension | None |
🗣️ Dividend History
Eli Lilly's dividend history demonstrates steadfast growth with no suspensions, reflecting its resilience and ability to generate shareholder value consistently. This stability is crucial for investors seeking steady income.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.73 |
| 2025 | 6.00 |
| 2024 | 5.20 |
| 2023 | 4.52 |
| 2022 | 3.92 |
📈 Dividend Growth
The pattern of dividend growth over the years has been crucial for Eli Lilly, allowing it to maintain investor confidence. It indicates fiscal health and the ability to support future payouts.
| Time(Years) | Growth |
|---|---|
| 3 years | 15.24 % |
| 5 years | 15.18 % |
The average dividend growth is 15.18 % over 5 years. This shows moderate but steady dividend growth.
🧐 Payout Ratio
Payout ratios provide insights into the sustainability of dividend payments. A balance between earnings and free cash flow payouts is crucial for long-term viability.
| Key figure | Ratio |
|---|---|
| EPS-based | 25.32 % |
| Free cash flow-based | 51.65 % |
With an EPS payout ratio of 25.32 %, the company appears to have a safe margin to maintain dividend payouts. Meanwhile, a 51.65 % payout from free cash flow shows a healthy balance between operational cash and shareholder returns.
💰 Cashflow & Capital Efficiency
Understanding cash flows and capital efficiency highlights how effectively the company uses its resources and ensures continued operational liquidity.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 0.06 % | -0.60 % | 1.32 % |
| Earnings Yield | 1.52 % | 1.00 % | 1.80 % |
| CAPEX to Operating Cash Flow | 43.84 % | 174.34 % | 39.35 % |
| Stock-based Compensation to Revenue | 1.43 % | 1.84 % | 1.30 % |
| Free Cash Flow / Operating Cash Flow Ratio | 4.70 % | -74.34 % | 60.65 % |
| Return on Invested Capital | 26.36 % | 19.77 % | 23.45 % |
Eli Lilly's cash flow metrics and capital efficiency ratios indicate robust capital management, with consistent returns on invested capital suggesting efficient asset utilization.
📊 Balance Sheet & Leverage Analysis
A strong balance sheet is the foundation for financial stability, allowing for secure dividend policies and effective leverage management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 2.37 | 2.34 | 1.52 |
| Debt-to-Assets | 42.74 % | 39.41 % | 32.81 % |
| Debt-to-Capital | 70.33 % | 70.08 % | 60.39 % |
| Net Debt to EBITDA | 1.99 | 2.62 | 1.64 |
| Current Ratio | 1.15 | 0.94 | 1.05 |
| Quick Ratio | 0.89 | 0.73 | 0.80 |
| Financial Leverage | 5.55 | 5.94 | 4.65 |
The leverage ratios reflect Eli Lilly's prudent approach towards debt management, maintaining acceptable coverage levels.
📈 Fundamental Strength & Profitability
High profitability and strong fundamental metrics are indicators of a company's capacity to sustain its operations and growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 74.62 % | 48.65 % | 58.64 % |
| Return on Assets | 13.45 % | 8.19 % | 12.62 % |
| Margins: Net | 23.51 % | 15.36 % | 21.88 % |
| Margins: EBIT | 29.88 % | 20.63 % | 25.01 % |
| Margins: EBITDA | 33.81 % | 25.11 % | 30.34 % |
| Margins: Gross | 81.31 % | 79.25 % | 76.77 % |
| R&D to Revenue | 24.40 % | 27.29 % | 25.19 % |
Eli Lilly displays strong profitability ratios, with substantial returns on equity and assets, underscoring a powerful operational framework.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Indicator |
|---|---|---|
| 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 stands out as a compelling dividend stock, upheld by a solid historical dividend growth, robust financial health, and an entrenched market position in the pharmaceutical industry. Its reliable payout record and consistent increase in dividends endorse an optimistic outlook for income-seeking investors. We recommend considering this stock for a diversified dividend-focused portfolio.