What’s the focus of your investment strategy? Do you look for strong growth, or do you prefer to stay defensive and collect passive income? Eli Lilly (NYSE:LLY) stock is among a small handful of assets that could be described as the total package. It gets a confident “A” rating as we embark on a new year that could be as good as 2022, or maybe even better, for Eli Lilly’s loyal shareholders.
Eli Lilly is a trusted name among drugmakers, and sometimes people invest in this company when they’re concerned about an imminent recession. Yet, this doesn’t mean you can’t play defense and offense at the same time.
Sure, Eli Lilly has all-weather appeal since people will continue to need medicines during a recession. Don’t pigeonhole the company as too safe to be interesting, though. As we’ll discover, Eli Lilly is preparing to deliver outstanding products – and hopefully, robust shareholder returns – in 2023.
| LLY | Eli Lilly | $365.84 |
LLY Stock Offers Growth Potential and Dividend Payouts
During a year when elevated inflation and fears of a recession caused many large-cap stocks to decline, LLY stock kept marching higher. As of Dec. 23, 2022, the stock was up 35% year-to-date.
It’s proof positive that Eli Lilly is a name that investors can count on in times of economic uncertainty. Eli Lilly’s shareholders were able to achieve the seemingly impossible combination of growth and safety in 2022.
Can LLY stock deliver similar results in 2023? There are no guarantees, but it’s certainly a positive sign that Eli Lilly just announced a 15% hike in its quarterly dividend. With that, Eli Lilly marks its fifth “consecutive 15% annual increase in dividend for 2023, doubling since 2018 and underscoring increasing confidence in the company’s outlook.”
Get Ready for Potential Blockbuster Products
Clearly, Eli Lilly’s dividend hikes indicate the company’s self-confidence and commitment to rewarding its shareholders. There’s yet another confidence booster, however, as Eli Lilly plans to either launch or submit to regulators five new medicines next year.
These potential blockbusters include donanemab for Alzheimer’s disease, tirzepatide for obesity, pirtobrutinib for cancer, mirikizumab for inflammatory bowel disease and lebrikizumab for atopic dermatitis. Eli Lilly is targeting tirzepatide for submission to regulators for approval, and the other aforementioned drugs for launches.
Interestingly, the U.S. Food and Drug Administration (FDA) added Mounjaro (tirzepatide) for diabetes to its list of drugs facing shortages. This medicine has already been approved to treat type 2 diabetes.
If Eli Lilly can ramp up its production of Mounjaro for diabetes treatment, this could provide a significant revenue source. Then, if Mounjaro gets approved as an obesity treatment, Eli Lilly could have a major blockbuster drug in its portfolio.
What You Can Do Now
Eli Lilly demonstrated its ability to deliver outstanding returns to loyal shareholders this year. Could 2023 be another spectacular year as Eli Lilly delivers growth, value and dividends?
It’s certainly possible, and investors of all stripes can choose to take a long position now. As Eli Lilly continues to introduce high-conviction products, LLY stock should deliver strong returns for long-haul shareholders.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.