INDIANAPOLIS - Eli Lilly and Company (NYSE:LLY), the global pharmaceutical firm, has announced a substantial expansion of its shareholder return program.
The board of directors has approved a new $15 billion share repurchase initiative, following the completion of its prior $5 billion program in the last quarter of 2024.
In addition to the buyback, the company has also declared a 15% increase in its quarterly dividend, marking the seventh consecutive year of dividend growth. The announced dividend 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 responded positively to the news, with shares rising by 1% in after-hours trading.
Eli Lilly's executive vice president and chief financial officer, Lucas Montarce, commented on the company's strategy amidst its growth phase, emphasizing the commitment to invest in new product launches, expand manufacturing capabilities, and advance the research and development pipeline.
Montarce also highlighted the intention to increase the capital returned to shareholders, reflecting the company's robust growth profile. The execution of the share repurchase program is expected to span over the next three years.
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