Eli Lilly Unveils $15 Billion Buyback and Dividend Boost

Author: Logan Wright Updated: 12-09-2024 04:24 PM

Eli Lilly and Company Announces $15 Billion Share Repurchase

In a strategic move to enhance shareholder value, Eli Lilly and Company (NYSE: LLY) has announced a new $15 billion share repurchase program. This announcement comes after the successful completion of its previous $5 billion program, which was executed in a calculated manner, showcasing the company's robust financial health.

Dividend Increase for Shareholders

Alongside the repurchase announcement, Lilly is also delivering good news to its shareholders with a 15% increase in its quarterly dividend. This marks the seventh consecutive year that the company has raised its dividend, reflecting a strong commitment to return capital to shareholders. The upcoming dividend for the first quarter of 2025 has been declared at $1.50 per share, with payment scheduled for March.

Growth Focus Amid Capital Returns

Lucas Montarce, the executive vice president and chief financial officer of Eli Lilly, emphasized the company’s ongoing focus on growth. He stated, “As Lilly enters a period of rapid expansion, our capital allocation priorities remain aligned with innovating and launching new products while ensuring the growth of our pipeline through research and development.” Lilly’s commitment to advancing healthcare solutions is evident, as they also plan to significantly increase capital returns to shareholders in the coming years.

Flexible Approach to Share Repurchases

The company has indicated that share repurchases will be conducted at management's discretion, allowing for flexibility in their approach. This program provides opportunities for purchases via various methods, including market purchases and accelerated repurchase agreements. Importantly, there are no time constraints imposed on this program, with the ability to suspend or discontinue it if necessary.

About Eli Lilly and Company

Eli Lilly has been at the forefront of medical innovation for nearly 150 years, striving to transform scientific advancements into effective treatments that improve lives worldwide. The company’s portfolio continues to expand, addressing critical health challenges such as diabetes management, obesity treatment, Alzheimer’s disease, and severe immune disorders. Lilly remains committed to making healthcare accessible and affordable, with ongoing initiatives aimed at enhancing clinical trials and broader medication access.

Frequently Asked Questions

What is the new share repurchase amount for Eli Lilly?

Eli Lilly has announced a new share repurchase program totaling $15 billion, reflecting its strong financial strategy.

How much has the dividend increased?

The dividend has been increased by 15%, marking the seventh consecutive year that Lilly has raised its dividend for shareholders.

When is the dividend payment scheduled?

The payment for the first quarter of 2025 is scheduled for March 10, with a record date of February 14, 2025.

What growth areas did Eli Lilly highlight?

During the announcement, Lilly emphasized its commitment to innovative launches and expanding its manufacturing capacity, as well as ongoing research and development efforts.

How flexible is the share repurchase program?

The share repurchase program allows purchases at management’s discretion, with no set time limit, enabling adaptability to market conditions.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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