10 Best Income Stocks to Invest in Now

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1. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 115

Eli Lilly and Company (NYSE:LLY) is an American multinational pharmaceutical company. The company continues to strengthen its standing as a major player in the healthcare industry, particularly through its leadership in the obesity and diabetes treatment markets. In its first-quarter 2025 results, the company reported a 45% year-over-year increase in revenue, reaching $12.7 billion. This surge was largely fueled by the exceptional performance of its GLP-1-based therapies, Mounjaro and Zepbound. These two drugs have significantly reshaped the company’s growth trajectory, positioning it as a front-runner in the rapidly expanding obesity treatment sector, alongside Novo Nordisk.

Eli Lilly and Company (NYSE:LLY)’s emphasis on high-demand, high-margin treatments is proving effective, as reflected in a 29% increase in non-GAAP earnings per share to $3.34 and an improved gross margin of 83.5%. These figures point to strong product demand, supported by efficient cost management and solid operating leverage. The company’s long-term investment of $50 billion since 2020 underscores its commitment to scaling operations and addressing rising global healthcare needs.

Eli Lilly and Company (NYSE:LLY) is a strong dividend payer, having raised its payouts for 11 consecutive years, which makes it one of the best dividend stocks on our list. The company offers a quarterly dividend of $1.50 per share and has a dividend yield of 0.82%, as of May 9.

Overall, Eli Lilly and Company (NYSE:LLY) ranks first on our list of the best income stocks to buy now. While we acknowledge the potential of LLY as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than LLY but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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