These sustainable companies can help you grow your wealth safely.
There’s something quite nice about depositing money into your investment account quarter after quarter and year after year. Here are two non-dividend-paying stocks with long histories of rewarding their shareholders with steadily increasing cash payouts. Both stocks can help you build your passive income streams.
Main dividend share no. 1: Lockheed Martin
Lockheed Martin (LMT 0.00%) helps the US government and its allies protect their citizens from a growing number of threats. The company is a vital ally in an increasingly volatile world.
As a major defense contractor, Lockheed supplies important technology to the US military. Here are just a few examples:
- The F-35 stealth aircraft serves a critical role in the security strategies of the Air Force, Navy and Marines, as well as that of 18 allied nations.
- The Aegis radar system is helping US forces protect merchant shipping vessels from drone and missile attacks in the Red Sea.
- Patriot-launched PAC-3 interceptors are enabling Ukraine to evade Russian airstrikes.
An F-35 jet takes to the sky. Image source: Lockheed Martin.
Lockheed has racked up orders worth $159 billion for its wide range of defense platforms. Combined with the service life of its key products — the F-35, for one, is expected to remain in service until at least 2080 — this massive backlog gives investors a high degree of visibility into future cash flow. of the company.
Management is committed to passing a large portion of this cash on to shareholders through share repurchases and a steadily growing dividend. Over the past decade, Lockheed has bought back a quarter of its stock, which has boosted earnings per share for its remaining shareholders. The defense chief has also increased his cash pay for 21 consecutive years. Today, Lockheed’s dividend yield is 2.7%.
The main dividend share no. 2: Eli Lilly
For more than 140 years, Eli Lilly (LLY 1.06%) has used the latest science to help people live better. The health care leader’s history is full of medical breakthroughs, but his latest discovery may be his most influential and profitable yet.
Almost 70% of American adults are obese or overweight, which can lead to life-threatening diseases such as diabetes, heart disease and stroke. Fortunately, Eli Lilly has developed a game-changing drug that makes it easier for people to lose weight.
Zepbound, the pharmaceutical pioneer’s weight management treatment for adults, activates hormone receptors that reduce appetite. Participants in a 72-week clinical trial who took the highest dose of the drug lost an average of 48 pounds.
When combined with diet and exercise, Zepbound also helped these people improve their cholesterol and blood pressure profiles. And tirzepatide, the active ingredient in Zepbound, may make it easier for adults with type 2 diabetes to control their blood sugar levels. Better yet, recent studies suggest that tirzepatide may have positive effects for people with liver disease and sleep apnea.
Because of tirzepatide’s many potential health benefits, CEO Dave Ricks believes it will be the most important drug of his 28-year career. Wall Street seems to agree. Investment bank Goldman Sachs expects Eli Lilly to lead the anti-obesity drug market that will grow to $130 billion by the end of the decade. In turn, the company’s earnings are projected to grow by more than 60% annually over the next five years.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.