Top Dividend Stocks Make a Comeback With Potential for Further Gains Ahead
Apple and Eli Lilly: Top Growth Picks Despite Market Volatility
Apple’s Strategic Moves Amidst Challenges
Despite facing notable challenges this year, Apple has shown remarkable resilience. The technology giant experienced pressure as competition in artificial intelligence (AI) intensified, leaving some investors concerned about its standing among tech peers. Furthermore, Apple’s reliance on manufacturing in China posed risks due to ongoing tariff uncertainties. However, strategic efforts to navigate these challenges have paid off, with shares climbing 17% over the past six months.
Recently, Apple introduced its new product lineup, including the anticipated iPhone 17 series, which is expected to energize the renewal cycle. The company’s fiscal Q3 2025 results also painted a promising picture. Apple reported a 10% revenue increase to $94 billion, while earnings per share grew by 12% to $1.57. With more than 2 billion active devices and a burgeoning services segment boasting over 1 billion paid subscriptions, Apple’s future profitability looks robust.
For income-focused investors, Apple remains attractive even with a modest dividend yield of around 0.4%. The company has consistently increased dividends by 100% over the past decade, supported by its substantial free cash flow and a conservative payout ratio of 16%. Looking ahead, Apple’s ability to deliver consistent returns and dividend growth makes it a compelling choice.
Eli Lilly’s Positive Trajectory in Weight Loss Treatments
Eli Lilly is experiencing substantial gains after overcoming setbacks earlier this year. Notably, Eli Lilly’s shares fell after mixed results from a phase 3 trial for the oral GLP-1 candidate, orforglipron. The trial showed weight loss in overweight or obese patients, yet fell short of Wall Street’s expectations.
Nevertheless, Eli Lilly has rebounded, with shares up 15% since that dip. A subsequent phase 3 study revealed more positive outcomes for orforglipron in both overweight and diabetic patients, improving upon Novo Nordisk’s competitor, Rybelsus. With regulatory submissions expected soon, orforglipron’s approval could bolster Eli Lilly’s leadership in the weight loss sector.
Eli Lilly’s pipeline continues to progress with the promising candidate, retatrutide. A phase 2 study revealed significant weight loss, indicating potential for further success in upcoming phase 3 trials. Eli Lilly’s recent financial performance reflects this potential, with second-quarter revenue jumping 38% year-over-year to $15.6 billion.
The company’s dividend policy further enhances its attractiveness, with a 200% increase over the last decade and a reasonable 44% payout ratio. Though the forward yield stands at a modest 0.8%, Eli Lilly’s solid growth prospects and commitment to dividend increases affirm its value in an investor’s portfolio.
