Why Eli Lilly Is the Unexpected Must-Buy Dividend Powerhouse to Own in 2026
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Why Eli Lilly Is the Unexpected Must-Buy Dividend Powerhouse to Own in 2026
"Dividend growth investing builds long-term wealth for retirement by focusing on companies that consistently increase payouts. These stocks provide rising income and often deliver superior total returns through compounding. Research from Hartford Funds, using Ned Davis Research data from 1973 to 2025, shows companies that grew or initiated dividends in the S&P 500 achieved higher average annual returns with lower volatility than non-payers or cutters. Over long periods, dividend growers and initiators outperformed the equal-weighted S&P 500 and demonstrated resilience in market declines."
"Eli Lilly ranks among the world's largest pharmaceutical companies by revenue and holds the highest market capitalization in the sector, hitting $1 trillion in November. The company derives most revenue from its incretin portfolio , primarily Mounjaro (tirzepatide for type 2 diabetes) and Zepbound (tirzepatide for obesity). In the third quarter, combined sales drove 54% year-over-year revenue growth to $17.60 billion. Analysts project tirzepatide as the top-selling drug by 2030."
"Tirzepatide acts as a dual agonist for GLP-1 and GIP receptors, outperforming single GLP-1 agonists like semaglutide, which is used in Novo Nordisk 's ( ) Ozempic and Wegovy. Head-to-head trials showed tirzepatide achieved around 20% weight loss compared to losses of 14% for semaglutide, with greater reductions in waist circumference and higher rates of 20% to 25% loss. GLP-1 Leadership and Future Growth Eli Lilly leads the booming GLP-1 market for diabetes and obesity, with Mounjaro and Zepbound capturing significant U.S. prescriptions and sales, outpacing Novo Nordisk's offerings despite competition. The market offers massive opportunity, driven by the prevalence of obesity and expanding indication"
Dividend growth investing focuses on companies that consistently raise payouts, producing rising income and compounding returns that build long-term retirement wealth. Historic data from Hartford Funds using Ned Davis Research (1973–2025) shows S&P 500 companies that grew or initiated dividends delivered higher average annual returns with lower volatility than non-payers or cutters, and outperformed the equal-weighted S&P 500 while proving more resilient during market declines. Eli Lilly is highlighted as a strong dividend growth candidate due to explosive revenue growth driven by Mounjaro and Zepbound, where combined sales rose 54% year-over-year to $17.6 billion, and tirzepatide’s dual GLP-1/GIP mechanism showed superior weight-loss results, positioning Lilly to lead a large, expanding GLP-1 market.
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