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For dividend seekers, pharmaceutical company
Eli Lilly (LLY - Get Report) has a payout worth watching. Right now, the $56 billion big pharma firm pays a 4.06% dividend yield broken up into four quarterly 49-cent payouts. But that's not why this stock makes our list of Rocket Stock names; instead, we've got rising analyst expectations to thank for that.
Eli Lilly is no stranger to blockbuster drugs; the firm's patent list includes names like depression drug Cymbalta and ED pill Cialis, the types of recognizable names that are must-haves for a big pharma firm. But more important, a hefty pipeline of attractive late stage therapies bodes well for investors in the next few years. With the patent expiration cliff still causing a lot of anxiety in pharma investors (and in part spurring the huge dividend yields in the industry right now), that pipeline is quickly becoming more important than the existing drugs are.
And Eli Lilly has the wherewithal to continue developing those new offerings. The firm currently sports more than $11 billion in cash and investments on its balance sheet, offsetting around $5.5 billion in debt. With cash making up around 20% of LLY's market cap, the risks of investing in this name are hugely diminished as long as this stock can keep borrowing money at lower rates than its returns on capital.