Eli Lilly Announces $15 Billion Buyback and Dividend Increase

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Eli Lilly Announces $15 Billion Buyback and Dividend Increase

INDIANAPOLIS - Global pharmaceutical company Eli Lilly (NYSE: LLY) announced a significant expansion of its shareholder return program. The board approved a new $15 billion share buyback initiative following the completion of a previous $5 billion program in the fourth quarter of 2024. In addition to the buyback, the company declared a 15% increase in its quarterly dividend, marking the seventh consecutive year of dividend growth. The dividend announced for the first quarter of 2025 is set at $1.50 per share, payable on March 10, 2025, to shareholders of record as of February 14, 2025.

The company's stock reacted positively to the news, rising 1% in after-hours trading. Lucas Montarce, the company’s Executive Vice President and Chief Financial Officer, emphasized the commitment to invest in new product launches, expand manufacturing capacity, and advance the research and development pipeline while commenting on the company's growth-stage strategy. Montarce also highlighted the intent to increase capital returned to shareholders, reflecting the company's strong growth profile. The share buyback program is expected to be executed over the next three years.