Dividend paying stocks have long been profiting investors by providing consistent and solid returns. During periods of economic uncertainty, they have generally been implemented more reliably than many other types of investments. Because of these qualities, more investors are relying on dividend stocks to take advantage of the compounding potential. This growth in optimism has encouraged several companies to join dividend clubs. This was evident in the way high-tech companies began eagerly issuing dividends in 2024.
Dividends paid by S&P companies reached a new high of $167.6 billion in the fourth quarter of 2024, up 6.7% from $157 billion in the last quarter, according to a report by S&P Dow Jones Indices. This also represents an 8.7% increase compared to $154.1 billion paid in the fourth quarter of 2023. For the year, total dividend payments were $629.6 billion in 2024, up 7.0% from the $58.82 billion distributed in 2023. The report further stated that it specified dividends beyond the S&P index.
Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, made the following comment on the dividend:
“Under tax increases, some of the spending could move from buybacks to dividends. However, no shift was considered dollar-based, as dividends remained a long-term, pure cash flow item that must be incorporated into the corporate budget.”
Dividends have played a key role in driving overall returns from long-term equity investments. This was highlighted in a study by London-based Guinness global investors, examining the performance of a wider market until 1940. According to the analysis, dividends and reinvestment payments account for approximately 94% of the index’s total return over that period. To put that into perspective, the $100 investment made at the end of 1940 would have grown to around $525,000 by the end of 2019 if dividends were reinvested.
The report also noted that the longer the investment, the more important the dividend becomes a more important part of the total revenue. Since 1940, in the broader market, dividends account for approximately 27% of total revenue over a typical one-year holding period. By extending it to three years, their contributions will rise to 36%. It rose to 40% over five years, reaching 47% over 10 years. For investors who have held their positions for 20 years, dividends account for around 57% of their total revenue. Due to this performance, analysts also recommend investing in dividend stocks.
Eli Lilly and Company (LLY): One of America’s best dividend stocks, according to analysts
Array of pharmaceutical pills with company logo on bottles.
Our Methodology:
Create this list and scan the Insider Monkey quarter database for 4th quarter, for US companies with a strong dividend policy and traded on US stock exchanges. From that group, as of April 20, they further refined the selection criteria by identifying stocks with more than 5% potential based on analyst price targets.
At Insider Monkey, I’m obsessed with hedge funds. Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. Quarterly Newsletter’s strategy was to select 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (For more information, please see here).
Possibility of an increase as of April 20th: 21.3%
Eli Lily & Company (NYSE: LLY) ranks 7th in the list of the best dividend stocks, according to analysts. In recent years, weight loss drugs have emerged as a key growth driver in the pharmaceutical sector, and Eli Lilly’s entry into the GLP-1 space has proven to be extremely successful. Beyond its work with GLP-1 drugs, the company is also seeing strong momentum in Verzenio, a cancer treatment. Verzenio has been helping to expand its presence in the field of oncology with multiple FDA approvals. Since its launch in 2025, inventory has skyrocketed by nearly 8%.
Another promising area for Eli Lilly and Company (NYSE: LLY) is the treatment of Alzheimer’s disease (AD), a market that is projected to reach tens of millions of dollars in the future, according to analysts. Despite its size, the advertising market remains fragmented, with limited competition, and many treatments target only certain symptoms. Last summer, Lily secured FDA approval for AD Drug’s Kisunla. Weight loss therapy is expected to remain the company’s main revenue driver in the near future, but Kisunla’s long-term growth potential should not be overlooked, especially as Lily expands its presence in the Alzheimer’s space.
In addition to its powerful product pipeline, Eli Lilly and Company (NYSE: LLY) also has a solid dividend history. The company has been rewarding shareholders with increased dividends over the past 11 years. It currently offers a quarterly dividend of $1.50 per share, and as of April 20th, it has a dividend yield of 0.71%.
Overall, lly 7th place According to analysts, it is on the list of America’s best dividend stocks. While we acknowledge the potential of LLY as an investment, our belief lies in the belief that some deeply undervalued dividend stocks offer higher returns and are greater promising within a shorter time frame. If you’re looking for a deep, undervalued dividend stock that’s more promising than LLY, but traded at 10 times its revenue and is increasing its revenue at double-digit interest rates per year, Cheap dividend stocks with dirt.
