July 01, 2026 a 12:46 pm
LLY: Dividend Analysis - Eli Lilly and Company
The analysis of Eli Lilly and Company's dividend profile reveals a mature and reliable income-generating investment. With 55 consecutive years of dividend payments, the company demonstrates remarkable stability. Despite a relatively low dividend yield of 0.56%, its consistent dividend history makes it an appealing choice for income-focused investors.
📊 Overview
Eli Lilly and Company, classified in the Health Care sector, exhibits a robust track record with a 55-year history of dividend payments. The current dividend per share is $5.99, illustrating their commitment to returning value to shareholders. The absence of any recent cut or suspension further underscores their financial resilience.
| Metric | Details |
|---|---|
| Sector | Health Care |
| Dividend yield | 0.56 % |
| Current dividend per share | $5.99 |
| Dividend history | 55 years |
| Last cut or suspension | None |
📈 Dividend History
Eli Lilly's impressive 55-year streak of dividend payments testifies to its stability and reliability, making it an attractive option for conservative investors seeking long-term income security. The consistent track record reflects sound financial management.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | $5.19 |
| 2025 | $6.00 |
| 2024 | $5.20 |
| 2023 | $4.52 |
| 2022 | $3.92 |
📈 Dividend Growth
Evidence of moderate but sustained growth is clearly shown by the average 5-year dividend growth of 15.18%, alongside a 3-year growth figure of 15.24%. This suggests an upward trajectory that, while modest, steadily enhances shareholder value over time.
| Time | Growth |
|---|---|
| 3 years | 15.24 % |
| 5 years | 15.18 % |
The average dividend growth of 15.18% over 5 years showcases moderate but steady dividend growth.
✅ Payout Ratio
The payout ratios provide insights into the sustainability of dividend payments. A 21.22% EPS-based payout ratio indicates a conservative approach, ensuring dividends are well-covered by earnings. Meanwhile, the 41.58% free cash flow-based ratio highlights a balanced strategy in leveraging cash flows for dividends.
| Key Figure | Ratio |
|---|---|
| EPS-based | 21.22 % |
| Free cash flow-based | 41.58 % |
The low EPS payout ratio of 21.22% illustrates a secure margin for continued dividend payments, while the moderate FCF payout of 41.58% is prudent for sustainability.
⚙️ Cashflow & Capital Efficiency
The cash flow metrics indicate Eli Lilly's ability to generate sufficient free cash flow relative to its operational cash flow, showcased by a ratio of 53.36%. This is crucial for maintaining dividend consistency. The company also displays a reasonable earnings yield of 2.36%, supportive of capital efficiency.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 0.93 % | 0.06 % | -0.60 % |
| Earnings Yield | 2.14 % | 1.52 % | 1.00 % |
| CAPEX to Operating Cash Flow | 46.64 % | 95.30 % | 174.34 % |
| Stock-based Compensation to Revenue | 0.96 % | 1.43 % | 1.84 % |
| Free Cash Flow / Operating Cash Flow Ratio | 53.36 % | 4.70 % | -74.34 % |
With a robust Free Cash Flow/Operating Cash Flow Ratio, the company's cash flows are efficient in supporting its dividend policy, even amid volatile capital expenditures.
🛡️ Balance Sheet & Leverage Analysis
Strong debt management is indicated with leverage metrics such as a current ratio of 1.50 and a quick ratio of 1.19 in 2025, showing sufficient liquidity to cover short-term obligations. Debt-to-equity and debt-to-assets ratios reflect a strategic capital structure.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.60 | 2.37 | 2.34 |
| Debt-to-Assets | 37.79 % | 42.74 % | 39.41 % |
| Debt-to-Capital | 61.56 % | 70.33 % | 70.08 % |
| Net Debt to EBITDA | 1.27 | 1.99 | 2.62 |
| Current Ratio | 1.58 | 1.15 | 0.94 |
| Quick Ratio | 1.19 | 0.89 | 0.73 |
| Financial Leverage | 4.24 | 5.55 | 5.94 |
The leverage metrics indicate a high level of financial leverage, balanced by strong interest coverage ratios, ensuring effective management of the company's obligations.
🔍 Fundamental Strength & Profitability
Fundamental analysis reveals consistent profitability with net profit margins improving over the years. Return metrics indicate efficiency, with ROE climbing to 77.78% in 2025, confirming strong utilization of equity capital.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 77.78 % | 74.62 % | 48.65 % |
| Return on Assets | 18.35 % | 13.45 % | 8.19 % |
| Margins: Net | 31.66 % | 23.51 % | 15.36 % |
| EBIT | 40.46 % | 29.88 % | 20.63 % |
| EBITDA | 42.86 % | 33.81 % | 25.11 % |
| Gross | 83.79 % | 81.31 % | 79.25 % |
| Research & Development to Revenue | 20.46 % | 24.40 % | 27.29 % |
The profitability metrics illustrate Eli Lilly's robust ability to generate returns, reinforcing its position as a leader in efficiency and innovation within the pharmaceutical industry.
📉 Price Development
🏆 Dividend Scoring System
| Criteria | Score | Details |
|---|---|---|
| Dividend yield | 3 | |
| Dividend stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 35 out of 40
🌟 Rating
Eli Lilly and Company stands as a solid investment choice for dividend-focused portfolios, given its illustrious history, stable financial framework, and consistent growth metrics. The combination of high dividend continuity, robust financial stability, and moderate yield offers a balanced investment, deemed suitable for varied investor preferences aiming for secure and steady income generation.
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