Billionaire Steve Cohen Is Bullish On These Dividend Stocks

#2 Eli Lilly and Co (NYSE:LLY)

– Shares Owned by Point72 Asset Management (as of September 30): 1.47 Million

– Value of Holding (as of September 30): $123 Million

Even though shares of pharma giant Eli Lilly and Co (NYSE:LLY) appreciated by 20% during 2015, the company still boasts a respectable annual dividend yield of nearly 2.50%. This could be among the reasons why in spite of Eli Lilly and Co (NYSE:LLY)’s stock remaining flat during the third quarter, four more funds covered by Insider Monkey reported owning a stake in the company as of the end of September and the aggregate value of their holdings in the company also saw a massive jump of 73.48% over the quarter. However, the rise has also made the company’s stock rather expensive, at a forward price-to-earnings multiple of 23.12.

Eli Lilly and Co is expected to declare its fourth-quarter results at the end of this month and analysts forecast EPS of $0.78 on revenue of $5.32 billion, higher than the EPS of $0.75 on revenue of $5.12 billion it had reported for the same quarter last year. On January 5, the company announced that its new Jardiance diabetes treatment has started to steal market share from competitors after clinical trials data emerged showing that it reduced deaths in patients with Type 2 diabetes by 32%. On the same day, analysts at BMO Capital Markets reiterated their ‘Outperform’ rating and $100 price target on the stock, which represents a potential upside of 19% from the stock’s current trading price.

While Point72 Asset Management and Samuel Isaly’s Orbimed Advisors  initiated stakes in the company during the third quarter, billionaire David E. Shaw‘s firm D.E. Shaw made an over fourfold increase to its stake in Eli Lilly and Co to 1.8 million shares during the same period.