
Key points
- Eli Lilly is a leading GLP-1 and Alzheimer’s drug company with a strong 10-year TSR of 1,141%.
- AbbVie is the king of the dividend, offsetting Humira losses with strong growth from Rinvoq and Skyrizi.
- AstraZeneca is an oncology powerhouse with Enhertu expected to add $10 billion in sales over five years.
For many investors, participating in… Drug stocks It involves finding inexpensive stocks, often penny stocks, in hopes of investing in a successful treatment for cancer, Alzheimer’s, or a rare disease. It’s understandable. Finding stocks like these can lead to life-changing returns.
But investing this way requires more than just taking on high risks. Even for companies that have a “sure thing” in the pipeline, it can take years to move a drug through the clinical trial phase. During that period, stock prices can be affected by traders aggressively trying to buy or short the stock.
This volatility is enough to push some investors away from these stocks and the sector. However, there is an alternative behind this binary decision. There are many large-cap pharmaceutical stocks that offer stability to go along with the opportunity for future growth. They’re called “big pharma” for a reason, which is why investors can hold these stocks for the long term.
Leading GLP-1 and a growing pipeline of advanced medicines
Eli Lilly & Co. (NYSE: LLY) He was a high performer and Pioneer in GLP-1 drugs. The market for the company’s drugs for obesity and type 2 diabetes is likely to expand in the next decade. Eli Lilly is also working to get these drugs approved for new indications, such as sleep apnea, which could expand the size of the target market further.
This could be reason enough to buy and hold LLY stock, which is expected to increase earnings by more than 34% over the next 12 months. But there is more to the story. The company’s strong pipeline includes treatments for Alzheimer’s disease and cardiovascular disease. In fact, Eli Lilly has received FDA approval for its Alzheimer’s drug, Donanemab.
In the past 10 years, LLY stock has generated a total return of over 1,141%. That includes Company profits. It only yields 0.74%, but the company has increased its payout in each of those 10 years. As of market close on October 21, LLY stock is up about 4% in 2025, but 16% below the target price agreed upon by analystsWhich makes it a good stock to buy on the dip.
Dividends Reinvent Growth Beyond Humira
It’s impossible to talk about buying and holding pharmaceutical stocks without touching on them AbbVie (NYSE: ABBV). ABBV stock has generated a total return of over 540% in the past 10 years. That includes Company profits. Not only does this have the highest dividend yield of all the stocks on this list, but AbbVie does too King of profitsa rare group of companies that have increased their dividends for at least 50 consecutive years.
The company’s blockbuster drug, Humira, is no longer under patent protection. Although this was expected to negatively impact revenues, this is an example of these large-cap names showing their strength.
While Humira sales declined, AbbVie has made up for this revenue with drugs such as Rinvoq and Skyriziwhich has patent protection. In fact, in the company’s latest earnings report, Revenue rose 6.6% year over year.
Innovation in oncology drives long-term growth
For investors looking outside the United States, AstraZeneca (NASDAQ: AZN) It is a name to watch. The company owns a variety of medicines, especially in the treatment of oncology. In addition, AstraZeneca has a pipeline of more than 120 drugs.
It is too Offers profitswith a yield of 1.2%, providing income along with long-term growth potential.
In October, the company announced the results of successful clinical trials for Enhertu, a breast cancer drug in production. Enhertu is known as an antibody drug conjugate (ADC), a more precise and targeted type of “smart chemotherapy.”
The drug is designed to reduce the risk of breast cancer relapse in patients at an early stage. The company believes Enhertu will add up to $10 billion to its sales in the next five years.
AZN stock is up about 26% in 2025. This corresponds to a 10-year total stock return of 212% – an average of about 20% per year. However, it is about 3% less than Target price agreed upon by analysts.
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Companies mentioned in this article:
a company
Current price
Price change
Dividend yield
P/E ratio
Consensus rating
Consensus price target
Eli Lilly & Co. (LLY)
$825.86
+0.6%
0.73%
53.98
Moderate purchase
$938.61
AbbVie (ABBV)
$228.06
-0.1%
2.88%
108.60
Moderate purchase
$234.80
AstraZeneca (AZN)
$83.29
-0.1%
1.21%
31.31
Moderate purchase
$86.00
| a company | Current price | Price change | Dividend yield | P/E ratio | Consensus rating | Consensus price target |
|---|---|---|---|---|---|---|
| Eli Lilly & Co. (LLY) | $825.86 | +0.6% | 0.73% | 53.98 | Moderate purchase | $938.61 |
| AbbVie (ABBV) | $228.06 | -0.1% | 2.88% | 108.60 | Moderate purchase | $234.80 |
| AstraZeneca (AZN) | $83.29 | -0.1% | 1.21% | 31.31 | Moderate purchase | $86.00 |

