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Key Takeaways
- Stryker, Amgen, and Eli Lilly have all raised their dividends, signaling increased capital returns to shareholders despite varied stock performance in 2025.
- Amgen now offers an industry-leading 3.2% dividend yield, one of the few large-cap healthcare stocks with a yield above 3%.
- Wall Street maintains a positive outlook across all three names, with Stryker offering the highest implied upside at over 20%, followed by Eli Lilly and Amgen.
Major players in healthcare are increasing their commitments to return capital to shareholders, resulting in significantly higher dividends. Recent dividend announcements from major companies in the sector highlight evolving capital return strategies. Analyst forecasts also shed light on where these stocks may be headed next.
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SYK Lifts Dividend as Analysts Eye Substantial Upside
First up is Stryker (NYSE: SYK). With a market capitalization of around $135 billion, Stryker is one of the most valuable stocks in the healthcare equipment and supplies industry. Despite both revenue growth and margins holding steady, Stryker has not performed well in 2025, delivering a total return of approximately -1%. Still, the company beat estimates in its latest earnings and raised its full-year guidance.
On Dec. 11, Stryker rewarded shareholders with a 4.8% dividend increase. The company’s quarterly dividend will move up to 88 cents per share. This dividend is payable on Jan. 30, 2026, to shareholders of record as of the close of business on Dec. 31. Overall, the stock now has an indicated dividend yield of approximately 1%.
Wall Street analysts have a fairly bullish view on Stryker going forward. The MarketBeat consensus price target of just under $432 implies 22% upside in shares. Targets updated after the company’s latest earnings release on Oct. 30 are slightly less bullish, but still suggest solid upside potential. Those targets average out to approximately $425, indicating upside of 20%.
AMGN Raises Outlook, Dividend Yield Eclipses 3%
Amgen (NASDAQ: AMGN) is a massive player in the biotechnology and pharmaceutical space, with a market capitalization of around $171 billion. Overall, the firm is one of the world’s ten most valuable stocks in this industry. The stock has had a good year in 2025, delivering a total return of approximately 26%. The company’s latest earnings, released on Nov. 4, impressed investors. The company posted beats and raised its full-year guidance. Notably, 16 of the company’s drugs posted double-digit growth rates, showing that it is not reliant on a single product to drive growth. Its largest revenue driver, Prolia, also grew by 9%.
On Dec. 9, Amgen declared a quarterly dividend of $2.52, a solid 5.9% increase. This new dividend is payable on March 6, 2026, to stockholders of record as of the close of business on Feb. 13, 2026. The stock now holds a very strong indicated dividend yield of around 3.1%.
The MarketBeat consensus price target near $332 implies only around 5% upside in shares. However, price targets updated after the company’s latest earnings are more optimistic. They average to approximately $348, suggesting 10% upside potential.
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LLY Provides 15% Dividend Increase with Shares Up Big in 2025
Last up is the undisputed king of pharmaceuticals, and healthcare for that matter, Eli Lilly and Company (NYSE: LLY). Its $920 billion market capitalization makes LLY by far the world’s most valuable stock in the healthcare sector. In second place is Johnson & Johnson (NYSE: JNJ). The firm’s market capitalization of $510 billion doesn’t hold a candle to Lilly. In 2025, Lilly has delivered an impressive total return of 34%. The company’s weight loss and diabetes drugs continue to see rabid demand, and it has more of these medicines in its pipeline. Last quarter, Lilly significantly beat analyst estimates on both sales and adjusted earnings per share (EPS).
On Dec. 9, Lilly declared a quarterly dividend of $1.73, marking a 15.3% increase over its previous payout. The new dividend is payable on March 10, 2026, to shareholders of record at the close of business on Feb. 13, 2026. Lilly’s indicated dividend yield now stands at nearly 0.6%.
The MarketBeat consensus price target on Lilly is near $1,109, suggesting that shares could rise an additional 8%. Targets updated after the company’s latest earnings report, released on Oct. 30, are more bullish. Their average is around $1,138, implying around 11% upside.
Among SYK, AMGN, and LLY, Amgen Leads on Income Potential
Based on their valuations, SYK, AMNG, and LLY all clearly hold important positions in the healthcare sector. In terms of providing investment income, Amgen stands out. It is one of the few U.S. large-cap healthcare stocks with a dividend yield above 3%.
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