Top dividend stocks Apple and Eli Lilly are showing resilience and potential for greater gains in the investment landscape. Despite earlier volatility this year, both companies are now poised for further growth. Their recent performances highlight their appeal for investors seeking both capital appreciation and dividends.
Apple: A Resilient Growth Story
Apple Inc. (AAPL) has navigated significant challenges throughout the year. Competition in artificial intelligence (AI) has intensified, and tariffs on imports, particularly from China, have raised concerns over profit margins. Yet, the company has managed a strong comeback due to various strategic maneuvers.
In recent months, Apple introduced its new product lineup, including the anticipated iPhone 17. Analysts project that this launch could trigger a renewed interest in the company’s offerings. Over the past six months, Apple’s stock price has surged by 17%, reflecting strong performance and investor confidence.
Financial Performance Highlights
- Third-quarter revenue for fiscal year 2025 rose by 10% year-over-year to $94 billion.
- Earnings per share increased by 12% to $1.57.
- Active devices reached record levels, exceeding 2 billion worldwide.
- Apple has over 1 billion paid subscriptions, enhancing its services segment.
While Apple’s forward dividend yield is around 0.4%, the company’s robust free cash flow allows for consistent dividend growth. Over the past decade, it has increased its dividends by 100%. With a conservative payout ratio of 16%, Apple is well-positioned for ongoing dividend increases.
Eli Lilly: Dominating the Weight Loss Market
Eli Lilly (LLY) faced setbacks earlier this year, particularly after mixed phase 3 trial results for orforglipron, its oral GLP-1 candidate. Initial weight loss results did not meet Wall Street expectations. Nonetheless, the company’s stock rebounded by 15%, fueled by promising new data.
A subsequent phase 3 study indicated that orforglipron is effective for both overweight or obese and diabetic patients. This candidate showed significant weight loss outcomes and reduced A1C levels, surpassing results from a competitor’s drug, Rybelsus. The anticipated regulatory approval for orforglipron by early 2027 would solidify Eli Lilly’s leading role in the weight loss market.
Recent Financial Achievements
- Second-quarter revenue soared by 38% year-over-year, reaching $15.6 billion.
- Retatrutide, another promising candidate, induced weight loss of up to 24.2% in earlier trials.
- The recent increase in dividends by 200% over the last ten years underscores Eli Lilly’s commitment to returning value to shareholders.
- Current forward yield stands at approximately 0.8% with a reasonable payout ratio of about 44%.
Investors are looking at both Apple and Eli Lilly as strong long-term plays. Their recent performances demonstrate resilience and potential for continued growth in both stock value and dividends.
