5 Healthcare Stocks for an Income Portfolio

4. Eli Lilly and Company (NYSE:LLY)

Number of Hedge Fund Holders: 61

Dividend Yield as of April 22: 1.41%

Eli Lilly and Company (NYSE:LLY) was founded in 1876 and is headquartered in Indianapolis, marketing human pharmaceuticals worldwide. The company’s fourth quarter revenue of $8 billion outperformed Wall Street estimates by $113.13 million. Eli Lilly and Company (NYSE:LLY) stated that it expects to spend approximately $165 million for research and development milestones in the first quarter of 2022. 

On December 13, Eli Lilly and Company (NYSE:LLY) declared a $0.98 per share quarterly dividend, a 15.3% increase from its prior dividend of $0.85. The dividend was paid on March 10, for shareholders of the company on February 15. Eli Lilly and Company (NYSE:LLY)’s dividend yield on April 22 came in at 1.41%. 

Morgan Stanley analyst Terence Flynn assumed coverage of Eli Lilly and Company (NYSE:LLY) on April 6 with an Overweight rating and a $364 price target, naming it his Top Pick among U.S. Pharmaceuticals. Despite the generally constructive backdrop, the analyst believes that Eli Lilly and Company (NYSE:LLY) has “the most robust new product cycle” outlook in pharma. In the next two years, the company could launch five new drugs, the analyst added.

Among the hedge funds tracked by Insider Monkey, 61 funds were bullish on Eli Lilly and Company (NYSE:LLY) at the end of December 2021, with collective stakes worth $5.30 billion. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the biggest position holder in the company, with more than 2 million shares valued at approximately $591 million. 

Here is what Saturna Capital Amana Funds has to say about Eli Lilly and Company (NYSE:LLY) in its Q4 2021 investor letter:

“Industrials and pharmaceutical companies were among the Amana Income Fund’s strongest performers in the fourth quarter. Industrials and pharmaceutical companies were among the Amana Income Fund’s strongest performers in the fourth quarter. Drug maker Eli Lilly is represented in the 10 Largest Contributors.”