15 Best Next Generation Dividend Aristocrats to Buy

3. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 117

Eli Lilly and Company (NYSE:LLY) may offer a modest dividend yield, but its track record of consistent payouts remains strong.

The company’s underlying business is thriving, with analysts projecting its market value could hit $1 trillion in the coming years. Positive developments from its drug pipeline are boosting investor confidence, as promising clinical data could lead to new approvals and long-term growth. This optimism has already been reflected in the stock, which has soared over 412% in the last five years, far outpacing the broader market’s 93% return.

On the dividend front, Eli Lilly and Company (NYSE:LLY) has increased its payout for 11 consecutive years. With a payout ratio of just 44%, the company retains ample room for further dividend growth. In addition, it approved a new $15 billion share buyback program at the end of 2024, following the completion of a prior $5 billion program in the same year.

While the current yield sits at 0.73%, the strength of Eli Lilly and Company (NYSE:LLY)’s business and its growth potential make it a compelling option for income-focused investors. The company offers a quarterly dividend of $1.50 per share.