Is Eli Lilly a Good Dividend Stock to Buy Now?

Core Viewpoint - Eli Lilly's stock is expected to continue rising due to strong sales of its anti-obesity drug Mounjaro and Alzheimer's drug Kisunla, with analysts projecting significant profit growth in the coming year [1]. Group 1: Reasons to Buy - Tirzepatide, marketed as Mounjaro for type 2 diabetes, has gained FDA approval for chronic weight management as Zepbound, potentially becoming a top-selling drug [2]. - Mounjaro's first-quarter sales reached an annualized $7.22 billion, while Zepbound is projected to generate $2.07 billion [3]. - Tirzepatide's sales are catching up to semaglutide, with an annualized $9.3 billion in the first quarter, and it shows a higher efficacy in weight loss compared to semaglutide [4]. - The FDA approved Kisunla (donanemab) for Alzheimer's treatment, which may gain popularity due to its differentiated dosage method [5][6]. Group 2: Reasons to Remain Cautious - Eli Lilly's stock price reflects high growth expectations, trading at 68.9 times the midpoint of management's earnings expectation for 2024 [7]. - The company raised its 2024 revenue expectations by $2 billion, indicating that future results must meet these elevated projections to sustain stock performance [7]. - Several of Eli Lilly's drugs experienced over 10% year-over-year sales declines in the first quarter, suggesting potential volatility in overall revenue [7].