These three companies, Eli Lilly, AbbVie, and Novartis, are excellent options for investors seeking passive income stocks with solid growth potential.
Eli Lilly has shown itself to be an innovative powerhouse in the pharmaceutical industry with important drug approvals in diabetes, obesity, and potentially Alzheimer’s disease. Despite some inconsistent financial results in the past due to coronavirus-related sales, the company is expected to experience steady growth moving forward. With a projected EPS growth of 56% in the next five years, Eli Lilly is poised to deliver market-beating returns and maintain its attractive dividend program.
AbbVie, a Dividend King with 52 consecutive dividend increases, offers a strong dividend yield of nearly 3.8%. Despite declining sales of its blockbuster drug Humira, the company has solid growth prospects with new therapies like Rinvoq and Skyrizi expected to drive revenue growth. Additionally, AbbVie’s recent acquisitions are expected to contribute to its future success.
Novartis, a Swiss-based pharmaceutical company, offers investors a high dividend yield of 3.9% and has a track record of consistently increasing dividend payments for 27 years. With strong financials and a focus on growth initiatives, Novartis is projected to achieve annual growth of 5% until 2027. The company’s diverse portfolio of drugs, including potential blockbusters like Kisqali, positions it well for continued success and increased returns for shareholders. At a low price relative to its future earnings, Novartis presents a compelling opportunity for investors looking for recurring income in the long term.