Compare the 10-year performance and dividend income and total return of two leading companies in the bio-medical field: AbbVie Inc. (ABBV) and Eli Lilly and Company (LLY).
AbbVie Inc. ABBV | NYSE
Eli Lilly and Company LLY | NYSE
Here are 10-year total returns of these two companies:
ABBV total return with dividends reinvested: 292.9%
LLY total return with dividends reinvested: 1,196.0%
Compare Earnings, Free Cash Flow, Dividend Payout Retios and other metrics for ABBV vs LLY.
10 years returns for ABBV & LLY - dividends, price growth and total returns:
Stats below compares the performance of a $10,000 investment into each company 10 years ago, with dividends being aoutomatically reinvested (DRIP) on the payout day, with no additional investments.
| ABBV | LLY | |
|---|---|---|
| Starting Balance | $10,000 | $10,000 |
| Initial Price | $66.97 | $71.42 |
| Initial Shares | 149.32 | 140.02 |
| Latest Dividend | $1.64 | $1.50 |
| Total Dividends | $8,063 | $4,936 |
| Last Shares Price | $175.58 | $767.76 |
| Final Shares | 223.79 | 168.8 |
| Total Portfolio Value | $39,293 | $129,599 |
| Total Return | 292.9% | 1,196.0% |
Here is a chart comparing the 10-year total returns in of ABBV and LLY, shown side-by-side. These total return figures take into account dividend reinvestment and represent the value of all shares owned at each respective point in time.
Estimate Dividend Snowball and total future returns for ABBV and LLY with our dividend (DRIP) calculator.
Here are 10 year price charts for ABBV & LLY:
In the span of 10 years, the price of ABBV surged by 162%, climbing from $66.97 to $175.58, which equates to a compound annual growth rate (CAGR) of 10.12%.
Similarly, over the same timeframe, LLY experienced a price increase of 975%, escalating from $71.42 to $767.76, marking a CAGR of 26.81%.
Dividend payments and yield graphs for ABBV & LLY:
For ABBV, the most recent dividend stands at $1.64, with a yield of 3.74%. The initial dividend was $1.55, and over the past 10 years, the total dividends paid amount to $8,063, demonstrating a dividend CAGR of 12.39%.
Similarly, LLY's latest dividend is $1.50, yielding 0.78%. The first dividend was $0.49, and the cumulative dividends paid over the last decade total $4,936, reflecting a dividend CAGR of 11.61%.
If overall yield-curve is going up, the stock is considered inexpensive, relative to its dividend. If curve is loping down, the stock is getting more expensive relative to its dividends.
Dividend CAGR (Compound Annual Growth Rate) is how much the dividend is growing, averaged per year.
Based on ABBV's 10-year CAGR, it would take 5.81 years to double your dividend yield-on-cost.
For LLY's and its 10-year CAGR, it would take 6.2 years to double your dividend yield-on-cost.
CAGR 72 Rule: Simply put - if your COMPOUND interest (or dividend) rate is 7% it will take roughly 10 years to double your investment. If your rate is 10%, it will take approximately 7 years to double the investment. Basically to know the interest/yield rate that you would need to earn to double your investment, take 72 and divide by number of years.
For example: You want to double your investment in 5 years. 72/5 years = 14.4%. That's the interest rate that you would need to double your portfolio value.
While most dividend companied do not offer anything near 14.4% dividned yield, the CAGR or dividend growth is where the magic happens. Unlike bonds and CDs, the dividend or "interest payment" of dividend-paying stocks usually goes up!
Caution: If a company is paying something like a 14.4% dividend - most likely it's a yield/value trap, and a dividend cut is coming soon.
Investing $10,000 in ABBV & LLY today: Estimated Future Return & Dividends:
Reflecting on the performance of the past decade, ABBV achieved a share price compound annual growth rate (CAGR) of 10.12%, accompanied by a dividend CAGR of 12.39%.
In the same timeframe, LLY recorded a share price CAGR of 26.81%, along with a dividend CAGR of 11.61%.
How can a $10,000 investment perform based historic CAGR number:
If you invest $10000 today into one of these companies, and utilizing these CAGR figures, we can forecast the 10-year future performance of your initial, assuming dividends were continuously reinvested (DRIP),
would have experienced growth and accumulated dividends as detailed below:
| ABBV | LLY | |
|---|---|---|
| Start Value | $10,000 | $10,000 |
| Start Share Price | $175.58 | $767.76 |
| Start Shares | 56.95 | 13.02 |
| Start Dividend (Yield) | $1.64 (3.58%) | $1.5 (0.7%) |
| Final Shares | 83.78 | 13.57 |
| Final Dividends | $4.98 | $3.90 |
| Annual Dividends | $1,670 | $212 |
| Share Price | $418.03 | $6,508.64 |
| Total Dividends | $7,899 | $1,199 |
| Final Value | $35,021 | $88,298 |
And here is how your $10,000 investment into AbbVie Inc. or Eli Lilly and Company could perform based on CAGR figers above, represented on a graph - a Dividend DRIP Snowball:
Try our dividend DRIP calculator:
ABBV
or
LLY - estimate your returns and dividend income!
Using our dividend calculator, you can customize initial investment, projected Dividend & Price growth rate, additional investment amount and frequency, to fit your investing style and goals.
The figures presented above are projections based on the Dividend and Price CAGR for each stock, and they represent potential future returns. It's important to note that these calculations are made under the assumption of DRIP (Dividend Reinvestment Plan).
Please remember, these are only estimations, and actual returns may vary. We cannot guarantee that your actual returns will align precisely with these metrics.
