Key Points
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Healthcare leaders Eli Lilly and Medtronic are using AI to enhance their operations.
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Eli Lilly’s revenue has accelerated with growth in the weight-loss drug sector.
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Medtronic has a diverse product portfolio and has experienced strong revenue growth recently.
Healthcare companies Eli Lilly (NYSE: LLY) and Medtronic (NYSE: MDT) are leveraging artificial intelligence (AI) to improve their operations, though AI is not central to their business models. As of 2023, Eli Lilly has increased its dividend payouts by 239.2% over the past decade, although its forward yield stands at 0.6%, compared to the S&P 500’s average of 1.2%. Eli Lilly has made significant advancements in the weight-loss drug market, driving rapid revenue growth.
Medtronic, a leading medical device manufacturer, has seen strong revenue from new launches and has received clearance for its Hugo system, which presents long-term opportunities. The company has incorporated AI into its products, such as the LINQ II cardiac monitor, improving performance and reducing false alerts. Additionally, Medtronic boasts 48 consecutive years of dividend increases.
