Two Quiet Giants Powering Decades of Dividend Growth

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💡 Invest in companies you believe in - W. Buffett

Looking for forever stocks? Here’s where the real wealth begins.

Most long-term investors are chasing the same dream—steady income, rising dividends, and the kind of business you can count on no matter what the market throws at you. But here’s the truth: very few companies actually deliver that full package. The ones that do? That’s where serious wealth is built.

In this article, we spotlight two under-the-radar giants that check every box: one dominates the booming field of animal health, the other is redefining the future of diabetes and obesity treatment. Both are quietly compounding in the background—posting strong growth, consistently raising their dividends, and building real long-term value.

If you’re building a dividend portfolio you’ll still be proud of 10, 20, even 30 years from now—this is a must-read.

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1. Zoetis (NYSE: ZTS)

Zoetis (NYSE: ZTS) is the world’s leading animal health company, specializing in the discovery, development, and commercialization of medicines, vaccines, diagnostics, and technologies for both companion animals (e.g., dogs, cats, horses) and livestock (e.g., cattle, poultry, swine).

Headquartered in Parsippany, New Jersey, Zoetis operates in over 100 countries and employs approximately 13,800 people. The company was spun off from Pfizer in 2013 and has since grown into an independent powerhouse, with a revenue of $9.3 billion in 2023 and a market cap of $66 billion as of July 2025.

Zoetis is renowned for its innovative portfolio, including blockbuster products like Apoquel (for allergic itch in dogs), Simparica Trio (a flea/tick/heartworm preventive), and Librela/Solensia (osteoarthritis treatments). It also offers diagnostic tools (e.g., VETSCAN) and precision livestock farming solutions. The company’s financial strength is evident in its consistent revenue growth (10% YoY in Q1 2024) and robust margins (70% gross margin).

Key strategic advantages include:

• Market leadership: Largest share in animal health, with products in 8+ species.

• R&D focus: Invests ~$500M annually in research, driving breakthroughs like AI-driven drug discovery.

• Global expansion: Acquisitions (e.g., Jinyu Bio in China) and partnerships (e.g., Ceres Nanosciences) bolster its reach.

Zoetis also emphasizes sustainability and the human-animal bond, aligning its mission with societal trends toward pet care and food security. With a dividend yield of 1.3% and a 502% dividend growth over 10 years, it appeals to long-term investors.

History of the Company

Zoetis traces its roots to 1952 when Pfizer established its Animal Agriculture Division, later renamed Pfizer Animal Health in 1988. The company’s early breakthroughs included Terramycin® (1950), the first antibiotic for livestock, and Liquamycin® LA-200 (1980), a pioneering cattle treatment. Through strategic acquisitions—such as Norden Laboratories (1995) and Pharmacia Corp. (2003)—Pfizer expanded into companion animal care and global markets.

In 2012, Pfizer announced the spin-off of its animal health division, and Zoetis launched as an independent company in 2013 via one of the largest U.S. IPOs at the time, raising $2.2 billion. Post-IPO, Zoetis strengthened its portfolio with key products like Apoquel® (2014) for canine allergies and Simparica Trio® (2019), a parasite preventive, while acquiring Abaxis (2018) for diagnostics and Jurox (2022) for livestock solutions.

Celebrating its 10th anniversary in 2023, Zoetis now leads the animal health industry with a $9.3B revenue and innovations like Librela® for osteoarthritis pain.

A Dividend Powerhouse With Staying Power

Zoetis has established itself as a reliable dividend grower, with 11 consecutive years of dividend increases and a low payout ratio of ~32%, reflecting its ability to sustain and raise payouts while reinvesting in growth. Key highlights:

• Current Dividend: $0.50 per share quarterly ($2.00 annually), yielding 1.35% as of July 2025.

• Growth Trajectory: Dividends have grown at a 19.64% annualized rate over the past decade, with a 16% increase announced for Q1 2025.

• Upcoming Payment: Next dividend of $0.50 will be paid on September 3, 2025, to shareholders of record by July 18, 2025.

The company’s strong financials (70% gross margins, $9.3B revenue in 2024) and diverse product portfolio (e.g., Apoquel, Librela) support its dividend sustainability. Analysts project continued growth, citing Zoetis’ 20%+ annual dividend hike average over 5 years and untapped market potential in animal health.

Financial Statement

If you want to stay on top of your portfolio's health, don't forget to check in on the financials of the companies you've invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they're performing.

Here is a quick dive into Zoetis over last years

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Future Growth Prospects for Zoetis

Zoetis (NYSE: ZTS) is well-positioned for sustained growth, driven by innovation, geographic expansion, and strong demand in animal health markets. The company projects 6-8% organic operational revenue growth in 2025, supported by key products like Simparica Trio® (parasiticide), Librela® (osteoarthritis treatment for dogs), and Solensia® (for cats). Analysts forecast 7.3% annual earnings growth and 5.1% revenue growth through 2027, with a 50.3% return on equity (ROE), highlighting operational efficiency.

Key Growth Drivers:

• Product Pipeline: Zoetis is advancing next-gen long-acting osteoarthritis and dermatology treatments, with new approvals expected in 2025-2026.

• International Expansion: Emerging markets like Brazil and the U.K. are contributing to 11% operational revenue growth in Q1 2025, fueled by livestock and companion animal products.

• Manufacturing Investments: A new facility in Atlanta and increased U.S. production (75% of domestic sales) aim to mitigate tariff risks and ensure supply chain resilience.

• Sustainability & AI: The company is leveraging AI-driven drug discovery and renewable energy (80.6% global renewable electricity use) to enhance R&D and reduce costs.

Risks include competitive pressures in dermatology and regulatory hurdles, but Zoetis’s diversified portfolio and low payout ratio (~32%) provide flexibility to navigate challenges while rewarding shareholders with consistent dividend growth.

Outlook: With a $9.5B+ revenue target for 2025 and a focus on high-margin biologics and diagnostics, Zoetis remains a leader in the $60B+ global animal health market.

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• Dividend Kings

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With 25+ years of consecutive dividend increases, Dividend Aristocrats are among the strongest dividend growth stocks. These companies have a proven track record of not only maintaining but consistently increasing their dividends, often outperforming the broader market over time.

2. Eli Lilly (NYSE: LLY)

Eli Lilly (NYSE: LLY) is one of the world's largest pharmaceutical companies, specializing in the development and production of innovative drugs for diabetes, obesity, oncology, neurological, and immunological diseases.

Founded in 1876 by Civil War veteran Eli Lilly, the company pioneered insulin production by mass-producing the first commercial insulin, Iletin®, in 1923, saving millions of lives of diabetes patients.

What Makes Eli Lilly Famous?

• Diabetes & Obesity: The company is a leader in this field thanks to blockbuster drugs like Trulicity, Mounjaro, and Zepbound (tirzepatide)—the first-in-class obesity treatment approved in 2023.

• Psychiatry & Neurology: Eli Lilly developed well-known drugs such as Prozac® (fluoxetine) for depression and Zyprexa® (olanzapine) for schizophrenia.

• Oncology: In 2019, the company acquired Loxo Oncology, strengthening its portfolio of targeted cancer therapies.

• Innovation: In 2024, Eli Lilly became the world's most valuable pharma company, with a market cap of $842B, largely due to the success of its GLP-1 agonists.

Eli Lilly is also known for its corporate social responsibility, including diabetes patient assistance programs and mobile clinical trials to improve healthcare accessibility.

The company remains a key player in the pharmaceutical industry, combining scientific breakthroughs, consistent dividend growth, and global healthcare impact.

History of the Company

Founded in 1876 by Colonel Eli Lilly, a Civil War veteran and pharmaceutical chemist, the company began as a small drug manufacturing business in Indianapolis, Indiana, with a commitment to producing high-quality, science-based medicines. Lilly pioneered mass-produced insulin in 1923 with Iletin®, transforming diabetes from a fatal disease into a manageable condition.

Throughout the 20th century, Lilly became a leader in antibiotics (penicillin in the 1940s), psychopharmacology (Prozac® in 1987), and oncology (Gemzar® in 1996). Major milestones include:

• 1955: Mass-produced the polio vaccine.

• 1982: Launched Humulin®, the first biosynthetic human insulin.

• 2019: Acquired Loxo Oncology ($8B) to expand cancer therapies.

• 2024: Achieved a $842B market cap, becoming the world’s most valuable pharma company, driven by obesity drug Zepbound® and Alzheimer’s treatment Kisunla™.

Lilly’s legacy combines scientific innovation, strategic acquisitions, and a focus on diabetes, mental health, and oncology, solidifying its role as a global healthcare leader.

A Dividend Powerhouse With Staying Power

Eli Lilly has established itself as a reliable dividend payer, with a 53-year streak of uninterrupted quarterly distributions and 50+ consecutive years of dividend growth.

As of July 2025, the company offers an annual dividend of $6.00 per share, yielding 0.78% at the current stock price of ~$771.71. The dividend is paid quarterly, with the next ex-dividend date set for August 15, 2025, and payment scheduled for September 10, 2025.

Key Dividend Metrics:

• Payout Ratio: 45.6% (2025), reflecting a sustainable balance between shareholder returns and reinvestment in R&D.

• Growth Rate: Dividends have grown at a 15.23% annual pace over the past year and 14.87% over 5 years, supported by robust revenue growth from blockbusters like Mounjaro and Zepbound.

• Historical Growth: The dividend has doubled since 2020, rising from $2.96 to $6.00 annually.

While the yield is modest compared to the S&P 500 average (~1.3%), Lilly’s low payout ratio and strong pipeline (e.g., Alzheimer’s drug Kisunla™) suggest room for future increases. The company’s $10.6B net income (2024) and leadership in GLP-1 therapies provide a solid foundation for sustained dividend growth.

Financial Statement

Here is a quick dive into Eli Lilly over last years

Future Growth Prospects for Eli Lilly

Eli Lilly is poised for exceptional long-term growth, driven by its dominance in GLP-1 therapies (Mounjaro®, Zepbound®), expansion into Alzheimer’s treatment (Kisunla™), and a robust late-stage pipeline. The company projects 2025 revenue of $58–61B (up from $45B in 2024), fueled by:

• Obesity & Diabetes Market Leadership: Demand for Zepbound and Mounjaro remains insatiable, with prescriptions growing 113% YoY in Q1 2025. Lilly plans to increase production by 60% in H1 2025 to meet demand.

• New Drug Launches: Kisunla (Alzheimer’s) and oral GLP-1 orforglipron (Phase 3 success) could unlock multi-billion-dollar markets.

• Strategic Acquisitions: Recent deals (e.g., Scorpion Therapeutics’ oncology asset, Verve Therapeutics) bolster Lilly’s pipeline in cancer and gene editing.

• Global Expansion: International sales grew 38% YoY (Q1 2025), with further penetration expected in Europe and Asia.

Risks include pricing pressures and competition (e.g., Novo Nordisk), but Lilly’s 81.7% gross margin and $19.75B projected 2025 net income (up 86.5% YoY) underscore its financial resilience. Analysts see upside to $1,100/share (JPMorgan), citing Lilly’s "unrivaled position in metabolic diseases".

Outlook: With 50+ straight years of dividend growth and R&D spending targeting next-gen biologics, Lilly is a long-term powerhouse in pharma.

Final Thoughts

Zoetis (NYSE: ZTS) and Eli Lilly (NYSE: LLY) exemplify the power of sector leadership, innovation, and disciplined capital allocation in delivering sustained shareholder value. Both companies combine robust dividend growth with structural tailwinds, making them compelling "buy-and-hold forever" candidates, albeit for different investor profiles.

Key Takeaways

1. Zoetis: The Animal Health Juggernaut

   • Dominates a $60B+ global animal health market with high-margin vaccines (e.g., Librela) and diagnostics.

   • Dividend growth (502% over 10 years) and a low payout ratio (32%) signal room for further hikes.

   • Risks include competition in dermatology, but its R&D pipeline (e.g., osteoarthritis treatments) and emerging market expansion (e.g., Brazil) provide buffers.

2. Eli Lilly: The Pharmaceutical Innovator

   • A GLP-1 pioneer (Mounjaro, Zepbound) with a $692B market cap and 86% EPS growth projected for 2025.

   • 50+ straight years of dividend growth, though its 0.8% yield is offset by 15%+ annual payout increases.

   • Future catalysts include Alzheimer’s drug Kisunla and oral GLP-1 therapies, but pricing pressures loom.

Why Own Both?

• Diversification: Zoetis offers recession-resistant exposure to pet care and livestock, while Lilly taps into high-growth metabolic diseases.

• Capital Efficiency: Zoetis’s 70% gross margins and Lilly’s 81.7% margins fund R&D and dividends simultaneously.

• Social Megatrends: Aging pets (Zoetis) and obesity epidemics (Lilly) ensure decades of demand.

To your wealth, MaxDividends Team

***

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