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Yahoo
3 days ago
- Business
- Yahoo
Why Eli Lilly (LLY) is Emerging as a Dividend Growth Leader in Pharma for 2025
Eli Lilly and Company (NYSE:LLY) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025. An array of pharmaceutical pills with the company's logo on the bottle. In the past five years, the company has raised its payouts at an annual average rate of 16%. Its consistent track record makes it an appealing choice for investors focused on dividend growth, especially given the strength of its broader operations. A company's ability to sustain dividends depends on its overall stability, and Eli Lilly stands out as one of the most solid players in the pharmaceutical space today. It holds a leading position in the rapidly expanding weight loss segment. Eli Lilly and Company (NYSE:LLY) also has a promising pipeline, with several potential blockbuster drugs that could each generate over $1 billion in annual revenue. Its revenue and earnings have been rising at a pace that surpasses many of its peers, a trend expected to continue in the coming years. As a result, investors who remain patient could benefit from steady dividend increases as well as long-term stock gains. On June 23, Eli Lilly and Company (NYSE:LLY) declared a quarterly dividend of $1.50 per share, which was in line with its previous dividend. Overall, the company has been growing its payouts for 11 consecutive years. As of July 17, the stock has a dividend yield of 0.77%. While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Why Eli Lilly (LLY) is Emerging as a Dividend Growth Leader in Pharma for 2025
Eli Lilly and Company (NYSE:LLY) is included among the 14 Best Pharma Dividend Stocks to Buy in 2025. An array of pharmaceutical pills with the company's logo on the bottle. In the past five years, the company has raised its payouts at an annual average rate of 16%. Its consistent track record makes it an appealing choice for investors focused on dividend growth, especially given the strength of its broader operations. A company's ability to sustain dividends depends on its overall stability, and Eli Lilly stands out as one of the most solid players in the pharmaceutical space today. It holds a leading position in the rapidly expanding weight loss segment. Eli Lilly and Company (NYSE:LLY) also has a promising pipeline, with several potential blockbuster drugs that could each generate over $1 billion in annual revenue. Its revenue and earnings have been rising at a pace that surpasses many of its peers, a trend expected to continue in the coming years. As a result, investors who remain patient could benefit from steady dividend increases as well as long-term stock gains. On June 23, Eli Lilly and Company (NYSE:LLY) declared a quarterly dividend of $1.50 per share, which was in line with its previous dividend. Overall, the company has been growing its payouts for 11 consecutive years. As of July 17, the stock has a dividend yield of 0.77%. While we acknowledge the potential of LLY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
TFSA Passive Income: 2 TSX Stocks for Retirees
Written by Andrew Walker at The Motley Fool Canada Canadian retirees are searching for reliable dividend-growth stocks to add to their self-directed Tax-Free Savings Account (TFSA) focused on generating steady and rising passive income. In the current market conditions with the TSX at a record high and economic uncertainty on the horizon, it makes sense to look for companies that have long track records of delivering dividend increases through challenging economic conditions. Enbridge Enbridge (TSX:ENB) trades near $61.50 at the time of writing compared to the 12-month high around $65.50. Investors can take advantage of the dip to pick up a dividend yield of 6.1%. Enbridge is benefitting from its US$14 billion purchase of three U.S. natural gas utilities last year. The businesses deliver predictable revenue streams and complement Enbridge's existing natural gas transmission and storage assets. Demand for natural gas is expected to grow in the coming years as new gas-fired power facilities are built to provide power for AI data centres. Enbride also has a $28 billion capital program on the go that will contribute to revenue and earnings growth. This should support ongoing dividend increases in the range of 3% to 5% in line with expected growth in distributable cash flow. Enbridge raised the dividend in each of the past 30 years. Fortis Fortis (TSX:FTS) operates natural gas distribution utilities, along with power generation sites and electricity transmission networks. Nearly all of the revenue comes from rate-regulated businesses. This helps management plan capital spending for growth initiatives. Fortis is working through a $26 billion capital program that will raise the rate base from $39 billion in 2024 to $53 billion in 2029. As the new assets are completed and go into service, the jump in revenue and profits should enable Fortis to meet its goal of raising the dividend by 4% to 6% per year over the next five years. Fortis has other projects under consideration that could get added to the development plan. The company also has a good track record of making strategic acquisitions, but hasn't completed a large deal for several years. That could change if interest rates continue to decline and consolidation ramps up in the utility sector. Fortis raised the dividend in each of the past 51 years. Investors who buy the stock at the current level can get a dividend yield of 3.8%. The shares trade near $64.50 at the time of writing compared to the 12-month high around $69. Expanding electricity network infrastructure across Canada is part of the new plan to build an energy corridor that runs from coast to coast in the country. Fortis has expertise in building and operating an electrical grid, so it could potentially benefit from new investment in this segment in the coming years. The bottom line Enbridge and Fortis are leaders in their respective sectors and pay attractive dividends that should continue to grow. If you have some cash to put to work in a TFSA focused on passive income, these stocks look attractive in the current environment and deserve to be on your radar. The post TFSA Passive Income: 2 TSX Stocks for Retirees appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
1 Magnificent Canadian Stock Down 22% to Buy and Hold for Decades
Written by Andrew Walker at The Motley Fool Canada Canadian National Railway (TSX:CNR) is down more than 20% from the 2024 high. Contrarian investors are wondering if CNR stock is now oversold and good to buy for a self-directed Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) portfolio focused on dividend growth and total returns. Canadian National Railway share price CN trades near $140 per share at the time of writing, compared to $180 at one point in March last year. The extended pullback over the past 16 months gives investors a chance to buy CNQ on a meaningful dip. Labour disputes at both CN and key ports, combined with wildfires in Alberta, disrupted operations in 2024. Customers had to find alternative transport to get their cargo to customers, which impacted volumes and revenue. Delays along the rail network drove up costs and hurt efficiency at the company. In the end, CN still managed to deliver a small rise in revenue in 2024 compared to 2023, but earnings slipped due to the jump in expenses. The weakness in the share price in 2025 is due to investor concerns about the impact of tariffs on the economy in the United States, Canada, and their key trading partners. CN operates roughly 20,000 km of rail lines that connect ports on the Pacific and Atlantic coasts of Canada to the Gulf Coast in the United States. It is a key player in the smooth operation of the North American economy. A recession caused by high tariffs and extended trade uncertainty would be negative for CN due to lower demand for its services. Upside? Resolution of the trade negotiations between the United States and Canada would likely drive CN's share price higher as investors remove the uncertainty discount. Management actually provided an upbeat outlook for 2025 when the company released the first-quarter (Q1) 2025 results. CN expects to deliver adjusted diluted earnings per share (EPS) growth of 10% to 15% in 2025 compared to last year. In Q1, the company saw revenue and operating earnings rise 4% year over year. Diluted EPS came in 8% higher. CN continues to make investments across its network to improve efficiency and enable growth. The capital program is about $3.4 billion this year, with investments occurring in both Canada and the United States. CN generates significant revenue south of the border, so the stock is a good option for investors to get exposure to the American economy through a top Canadian company. Dividends and share buybacks CN has a long history of returning cash to shareholders. The company raised the dividend by 5% for 2025. This is the 29th consecutive annual dividend increase from the board. CN is also buying back up to 20 million common shares under the current stock-repurchase plan. Risks The U.S. is threatening to impose higher tariffs on Canada in the coming weeks if there isn't more progress made on the trade negotiations. If the tariffs go into place and Canada retaliates with reciprocal tariffs while negotiations continue, there could be a new leg to the downside for CN stock in the near term. Time to buy? Investors should expect volatility to continue in the short term. A slide back to the 2025 low around $130 per share is certainly possible. That being said, CN already looks cheap. Investors might want to start nibbling near this level and look to add to the position on any further weakness. Patience is required, but buy-and-hold investors should do well with CN at this entry point. The post 1 Magnificent Canadian Stock Down 22% to Buy and Hold for Decades appeared first on The Motley Fool Canada. More reading 10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS] Market Volatility Toolkit A Commonsense Cash Back Credit Card We Love The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned. 2025 Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Visa (V): A Bull Case Theory
We came across a bullish thesis on Visa on Max Dividends's Substack. As of 2ⁿᵈ July, Visa's share was trading at $354.22. V's trailing and forward P/E were 35.60 and 27.98 respectively according to Yahoo Finance. siam sompunya Visa (V) is the global leader in digital payments, providing transaction processing infrastructure that connects consumers, merchants, financial institutions, and government entities across more than 200 countries. The company has a history dating back to 1958, and has established itself as a dividend aristocrat with 15 consecutive years of annual dividend increases. Visa's dividend growth rate has been impressive, with a 17.5% CAGR over the past decade, and a conservative payout ratio of 20-25% of earnings. Visa's future growth prospects are driven by global digital payment adoption, expansion in emerging markets, and innovation in fintech solutions. The company continues to benefit from the secular shift from cash to digital payments, with $16+ trillion in annual payment volume and 4.8+ billion cards in circulation. Key growth drivers include expansion in emerging markets, partnerships with central banks and local fintechs, and innovations in fintech and B2B payment solutions. Visa is a resilient and growth-oriented dividend stock with a dominant market position, consistent free cash flow generation, and a management team that balances reinvestment with shareholder returns. Visa's high-margin business model, with ~70% EBITDA margins, and asset-light structure ensure resilience in economic downturns. The company's strong financials, growth prospects, and commitment to returning capital to investors make it an ideal forever holding, with a compelling dividend growth story and massive potential for long-term wealth creation. Previously, we covered a by Jimmy Investor on March 21, 2025, which highlighted the company's potential to benefit from the AI energy boom through its critical infrastructure assets. The stock has not been directly covered since then under the same thesis. This is because the previous thesis - focused on energy infrastructure and AI - didn't directly align with Visa's core business. Max Dividends shares a similar view on Visa, emphasizing its resilient business model, dominant market position, and commitment to shareholder returns, but focuses on digital payment adoption and fintech innovation. Visa isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of Visa as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
