President Donald Trump's macroeconomic policies are taking center stage on Wall Street. The 47th U.S. president has decided to implement aggressive tariffs on imported goods from most countries, although he recently paused these plans for 90 days. Regardless, corporations are looking for ways to avoid paying these tariffs.

That includes two pharmaceutical leaders: Johnson & Johnson (NYSE: JNJ) and Novartis (NYSE: NVS). The industry has so far escaped Trump's tariffs, but that might not last for much longer, which makes these drugmakers' plans critical to monitor. Should investors still consider purchasing shares of Johnson & Johnson and Novartis in this environment?

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1. Johnson & Johnson

One way to avoid tariffs is to manufacture locally. That's what Johnson & Johnson plans on doing more of. The healthcare giant had already been shoring up its manufacturing capacity in the United States, but in March, it announced it would increase these investments. It plans to spend over $55 billion in the U.S. over the next four years, which is 25% more than it spent in the previous four years. J&J will build new facilities and expand some existing ones.

But it will take time for the company to move more of its manufacturing back into the U.S., and in the meantime, it could feel the impact of the tariffs. That's besides other issues the drugmaker faces in the medium term. It's still dealing with thousands of talc-related lawsuits. Furthermore, with the Inflation Reduction Act (IRA), a law passed in the U.S. in 2022 that granted Medicare the power to negotiate the prices of certain drugs, Johnson & Johnson will generate lower revenue from some products.

That said, there are plenty of things to like about J&J's business. Its significant investment in the U.S. to avoid tariffs demonstrates its ability to adapt to changing economic conditions. And that adaptability is precisely what makes this corporation massively successful. No pharmaceutical company generates more in annual revenue. Considering that, it's unsurprising the pharmaceutical company has existed for more than a century. Whether it's dealing with the IRA or some other legal challenge, the smart money is on Johnson & Johnson overcoming it.

It has done so plenty of times throughout its history. The pharmaceutical leader also boasts an AAA rating from Standard & Poor's -- that's a higher credit rating than the U.S. government's. The current legal challenges won't be its undoing.

Meanwhile, it continues to generate strong financial results. Growth in revenue and earnings isn't spectacular, but is steady and reliable. J&J has a deep pipeline of investigational drugs and a diversified medical device business.

Lastly, as more evidence of a robust business, it has now increased its payouts for 63 consecutive years, making it a Dividend King. Rather than avoiding Johnson & Johnson, investors seeking reliable income payers in these volatile times should seriously consider buying its shares.

2. Novartis

Novartis is also shoring up its U.S. manufacturing footprint. The company will invest $23 billion over five years to build seven new facilities and expand three more. In the end, it expects to locally manufacture 100% of the medicines it sells in the U.S. That's all good news for shareholders, as it shows that even if Trump's tariffs outlast his administration, Novartis is well-positioned to mitigate their impact.

The drugmaker expects to grow its revenue at a compound annual growth rate (CAGR) of 5% through 2029, a decent performance for a pharmaceutical giant. Novartis will lose U.S. patent exclusivity for some major products, including heart failure medicine Entresto, this year. Entresto generated $7.8 billion in sales last year, up 30% year over year, so this will be a significant loss.

However, Novartis will eventually fill the gap thanks to newer products. Fabhalta, first approved in the U.S. in 2023 to treat a rare blood disease called paroxysmal nocturnal hemoglobinuria, could generate peak sales of $3.6 billion according to some estimates. There will be others that will allow Novartis to clock that CAGR of 5% through 2029, despite its best-selling drug going off-patent in the U.S. this year. Beyond the next four years, the company's ability to generate consistent earnings, its existing lineup, and its deep pipeline should allow the stock to perform well.

Additionally, Novartis has increased its payouts for 28 consecutive years, a strong streak that makes it attractive to income-oriented investors. Despite the threat of tariffs, I think this dividend stock is a buy.

Should you invest $1,000 in Johnson & Johnson right now?

Before you buy stock in Johnson & Johnson, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Johnson & Johnson wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

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Prosper Junior Bakiny has positions in Johnson & Johnson. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.

What should investors do during a stock-market correction? One great strategy is to go shopping. A bull market will eventually follow the challenging and volatile times we face, and, based on history, this bull run is likely to be longer than the current ordeal. Furthermore, companies often end up trading for steep discounts during corrections, since many investors are unable to resist the urge to panic-sell -- one more reason why fortunes are made during downturns.

With that in mind, let's consider two stocks down 17% and 36%, respectively, this year that are worth investing in right now: Regeneron Pharmaceuticals (NASDAQ: REGN) and Moderna (NASDAQ: MRNA).

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1. Moderna

Moderna made a name for itself by quickly developing and marketing an effective COVID-19 vaccine when the world needed it most. Although it made a small fortune in this area, the biotech has been struggling since the pandemic started to recede. Moderna's revenue declined substantially while it returned to being unprofitable. The current volatile environment isn't helping the stock, either.

MRNA Revenue (Annual) data by YCharts.

But there is some good news: Moderna has made significant clinical progress in the past couple of years. It earned approval for a vaccine for the respiratory syncytial virus (RSV), mRESVIA, while it aced phase 3 studies for a combination coronavirus/influenza vaccine that could earn the green light sometime this year. This combo vaccine would be the first to inoculate patients against both COVID and flu, showing Moderna's innovative abilities once again.

The company consistently targets areas with high unmet needs, including some where no approved vaccines exist. Its late-stage pipeline features a potential vaccine for cytomegalovirus (CMV) -- there are currently none -- and a personalized cancer vaccine that could help significantly decrease the risk of recurrence or death in eligible patients. Moderna's early-stage pipeline boasts other ambitious candidates. The field of mRNA-based vaccines, in which the biotech specializes, is still relatively new -- but it looks incredibly promising.

Traditional vaccines are made from weakened viruses or bacteria, a process that takes time. While mRNA ones need the genetic code of the target infectious agent, they're faster and cheaper to develop. Moderna is proving to be an innovative player in this growing field, and it has a deep pipeline that should lead to more significant clinical milestones down the line.

So, despite the company's struggles over the past three years, it could have a bright future. That's why it's worth it to purchase Moderna's shares, as they're down by 36% this year.

2. Regeneron Pharmaceuticals

Regeneron Pharmaceuticals, a leading biotech company, faces some uncertainty. While its financial results looked strong last year, Eylea, a medicine for wet age-related macular degeneration co-marketed with Bayer, is facing biosimilar competition. Even though Regeneron earned approval for a new formulation of Eylea in late 2023, the old version continues to generate significant sales for the drugmaker.

That, combined with marketwide volatility, is what's causing Regeneron's shares to perform poorly; the stock is down 17% year to date. However, there are some key factors to consider.

First, Regeneron's most important medicine is Dupixent, an eczema treatment it co-markets with Sanofi. Dupixent was already among the world's best-selling medicines before it earned a label expansion in treating chronic obstructive pulmonary disease (COPD) late last year, which could add several billion dollars in sales of the therapy.

Second, the newer version of Eylea should continue stealing patients away from the older version, thanks to its more convenient dosing schedule. That should help smooth out losses from biosimilar competition.

Third, Regeneron has an exciting pipeline. It's growing its presence in oncology, has made moves in the weight loss market, and is developing a highly promising gene therapy for hearing loss that's posted excellent results in early-stage studies.

Finally, Regeneron recently initiated a dividend in addition to its already attractive share-buyback program; the company clearly intends to reward its shareholders. That's another good reason to invest in the stock.

Should you invest $1,000 in Moderna right now?

Before you buy stock in Moderna, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Moderna wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $680,390!*

Now, it’s worth noting Stock Advisor’s total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Regeneron Pharmaceuticals. The Motley Fool recommends Moderna. The Motley Fool has a disclosure policy.

Eli Lilly (NYSE: LLY) has been growing its sales at a good clip over the past year. This is partly thanks to Zepbound, a weight loss medicine that's already generating more than $1 billion in quarterly sales, although it was approved only in late 2023.

Zepbound's prospects still look bright, but some recent developments point to another weight loss drug that could become yet another powerful growth driver for Lilly. Let's look deeper into the pharmaceutical giant's latest clinical win and what it could mean for investors.

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Eli Lilly breaks new ground -- again

The active ingredient in Zepbound is tirzepatide, the first dual GLP-1/GIP agonist to earn approval from the U.S. Food and Drug Administration. Like its biggest rival on the market, Wegovy, Zepbound is administered via subcutaneous injection once a week.

However, some patients don't like to poke needles into their skin and would prefer an oral pill instead, even if they have to take it daily. That's why many drugmakers have been looking to develop an effective oral weight loss option, and Eli Lilly might have just done it.

In a phase 3 study, orforglipron, a once-daily weight management candidate, delivered excellent results in patients with type 2 diabetes. The highest dose of the therapy led to a mean weight loss of 7.9% in the trial, along with a 1.5% decrease in A1C levels over 40 weeks. As Lilly pointed out, orforglipron's performance was consistent with that of injectable GLP-1 medicines.

There are many reasons to buy

Since orforglipron is an oral pill, it will be easier (and cheaper) to manufacture in large quantities and launch in markets worldwide. That would be a meaningful advantage even if companies weren't dealing with tariff-related expenses that could increase their manufacturing costs. And since orforglipron's efficacy is consistent with that of existing injected medicines, it should capture a decent share of the market. So we can expect orforglipron to become an important part of Eli Lilly's lineup.

However, there are plenty of other reasons to invest in the stock. Lilly has outperformed the market in recent years due to its progress in diabetes and weight loss, while some of its older products continue to perform exceptionally well.

Consider Verzenio, a cancer drug. Last year, its sales soared by 37% year over year to $5.3 billion. Taltz, Lilly's immunosuppressant, reported revenue of $3.3 billion last year, 18% higher than the year-ago period. Eli Lilly isn't just a diabetes or a weight loss company. These products -- and some of the newer approvals the company has earned -- show that.

One of its more impressive achievements is the launch of Kisunla, a therapy for Alzheimer's disease (AD) -- an area that earned the nickname of a "graveyard" for investigational medicines, considering the large number of clinical failures. However, Lilly succeeded where the overwhelming majority of drugmakers failed, and Kisunla should be an important growth driver for a while.

Beyond any single medicine, though, Eli Lilly's greatest strength is proving to be its innovative abilities. Whether it's in diabetes, weight loss, Alzheimer's disease, immunology, or oncology, the pharmaceutical leader has had significant clinical and regulatory wins in recent years, adding several blockbusters -- or future blockbusters -- to its lineup. That's why revenue and earnings have recently grown rapidly, and it should maintain that pace:

LLY Revenue (Annual) data by YCharts.

Additionally, Lilly is an excellent dividend-paying stock. Its forward yield of 0.7% doesn't look particularly attractive -- the average for the S&P 500 is 1.3%. However, the company has increased its dividend by 200% in the past decade. And with a conservative payout ratio of 44%, it has room to increase its dividend even further.

Eli Lilly's shares jumped on the orforglipron news, and are now in the green for the year. But there's plenty of upside left for the stock, for those willing to hold onto its shares through volatility.

Should you invest $1,000 in Eli Lilly right now?

Before you buy stock in Eli Lilly, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 21, 2025

Prosper Junior Bakiny has positions in Eli Lilly. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

President Donald Trump's decision to impose sweeping tariffs on imports from nearly every country in the world has resulted in one of the worst quarters for the U.S. stock market in years. Investors fear that the impact of this move, as well as the retaliatory actions that some countries have already responded with, will take a heavy toll on the entire economy.

In this now-shaky macro environment, those who wish to buy stock may want to start by looking for companies that might not be as affected by a trade war due to the nature of their businesses. Netflix (NASDAQ: NFLX) and Visa (NYSE: V) are two great examples which fit that bill, but aren't just "tariff plays." Each can perform well in the long run.

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1. Netflix

Netflix's business is somewhat insulated from the impact of tariffs because it has no physical products. It generates most of its revenue from subscriptions. That's not to say the streaming specialist will be entirely immune from the impacts of Trump's trade war. The streamer has a fast-growing, ad-supported subscription tier. If the tariffs lead to an economic slowdown, many companies could cut their ad budgets, which would likely affect Netflix.

In addition, the streaming leader might lose paid subscribers if a recession hits. Still, Netflix should perform better than most in these challenging times since the lion's shares of its sales don't come from ads, and most companies suffer one way or another in economic downturns. Just as important, Netflix is still well-positioned to deliver strong performances long after this storm has subsided.

Netflix's subscriber base provides it with a massive amount of data on viewer habits that it can use to steer its content production decisions in the right directions. It has done that quite successfully throughout its history. Its revenue, earnings, and free cash flow have been growing at healthy clips recently, and they can keep doing so in the long run, considering the massive amount of white space still available to the company.

NFLX Revenue (Annual) data by YCharts.

Netflix estimates it has an addressable market of $650 billion in the markets where it operates -- it has only grabbed 6% of that total. While it will never capture anywhere close to all of it since the competition in streaming is fierce, Netflix remains the top dog. It should profit more than its peers from the ongoing shift in viewing away from linear TV and toward streaming. It is an excellent stock to buy and hold through this tariff-driven market meltdown and beyond.

2. Visa

Visa is a leading provider of financial services. Billions of credit and debit cards worldwide are branded with its famous logo. However, Visa does not issue these cards itself, nor does it provide the credit that underpins them -- that's the job of banks. Visa provides a network that facilitates digital transactions and charges a fee for each transaction made.

Since it does not issue the cards or lend money, it isn't subject to the risk that borrowers will default -- a threat that intensifies during recessions. If Trump's macroeconomic policies lead to a recession, Visa won't have to worry as much about that issue. Further, tariffs can lead to higher inflation, as Federal Reserve Chair Jerome Powell pointed out recently.

Inflation could be good for Visa, though. Since the fees it charges are computed as a small percentage of each transaction, people spending more money on the same items means higher revenues for Visa. With hundreds of millions of transactions on its network every day, incrementally growth in the average size of its fees starts to add up. That's why Visa could navigate the current environment just fine.

The company also has excellent long-term prospects. There is an ongoing shift in purchasing activity away from cash and checks, which still are used for trillions of dollars worth of retail activity. Meanwhile, Visa benefits from the network effect. The more consumers hold credit and debit cards with its logo, the more attractive it is for businesses to accept the brand as a payment option. And the more places Visa cards are accepted, the more appealing those cars will be to consumers. The result is a virtuous cycle that has kept the company's place in the financial landscape secure for decades.

Lastly, Visa is a terrific dividend stock. It has increased its payouts by a total of about 392% over the past decade. Visa's dividend should be safe even in challenging times. And for investors, reinvesting those growing distributions can add a boost to what should already be superior long-term returns.

Should you invest $1,000 in Netflix right now?

Before you buy stock in Netflix, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $495,226!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $679,900!*

Now, it’s worth noting Stock Advisor’s total average return is 796% — a market-crushing outperformance compared to 155% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Visa. The Motley Fool has a disclosure policy.

Major stock market indexes are down significantly this year, with many of the most valuable companies in the world leading the descent. However, some companies are performing well. These include Medical Properties Trust (NYSE: MPW) and CVS Health (NYSE: CVS), two dividend payers crushing the market. CVS Health is up by 50%, while Medical Properties Trust's shares have risen 26%.

If these companies continue defying the market meltdown, they could be a great addition to any portfolio, but only if they can deliver long after the storm has subsided. Let's find out whether it's worth purchasing their shares.

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1. Medical Properties Trust

Medical Properties Trust (MPT), a healthcare-focused real estate investment trust (REIT), faced a significant headwind when one of its largest tenants, Steward Healthcare, defaulted on rent and filed for bankruptcy. The company's revenue and earnings declined, and it was forced to slash its dividends -- twice. However, the stock is rebounding this year as the rest of the market is moving south.

MPT has moved closer to putting its issues in the rearview mirror. It signed deals to place new tenants in the facilities formerly occupied by Steward Healthcare. There is still some work to do here; MPT hasn't filled all these facilities and isn't receiving all the rent revenue from the ones it has. The new tenants will slowly ramp up rent payments until they match the full amount due in the fourth quarter of 2026.

However, MPT has made significant progress. Its portfolio is now more diversified than before, with average lease lengths of 18 years for its newest tenants. Furthermore, MPT has significantly improved its financial health by selling some facilities and issuing secured notes; it will use those proceeds to deal with short-term debt, making its near-term financial profile far more attractive.

The new MPT looks healthier than it did just a couple of years ago. But despite its strong performance this year, the stock is still down massively since its troubles first started:

MPW data by YCharts.

Some investors worry that there's still significant uncertainty involved. However, it might be worth it for long-term income-seeking investors to take a chance on the company. As a REIT, Medical Properties Trust is required to distribute 90% of its earnings as dividends, and it currently offers a juicy forward yield of 6.1%. While it has cut its payouts twice recently, its stronger financial foundation means more slashes are somewhat unlikely in the foreseeable future.

MPT is slowly getting back on track. The stock has earned serious consideration for more adventurous dividend seekers.

2. CVS Health

CVS Health dealt with significant uncertainty over the past three years due to at least a couple of factors. First, the pharmacy chain leader lost revenue from the sale of coronavirus-related products as the pandemic receded. Second, and more importantly, it struggled to contain rising costs within its Medicare Advantage business, leading to lower earnings than anticipated. CVS revised its own guidance several times, and never in the right direction, much to the dismay of investors.

However, the company might be turning a new leaf. CVS is under new management. The healthcare leader appointed a new CEO, David Joyner, in October. As if to welcome its new head, the company delivered much better-than-anticipated results in the fourth quarter. It's unlikely that much of this was due to a CEO who took over while the fourth quarter was already in full swing, so the question remains: Can CVS Health right the ship?

My view is that while it's too early to say, the business has important strengths. CVS is a trusted, diversified healthcare brand with footprints beyond its pharmacy chain unit. It's a leading health insurer, has a primary care business, and recently launched Cordavis, a subsidiary that will manufacture biosimilars.

CVS could recover in the long run, but it's not clear what moves the new CEO will make to improve the business -- one of which could be to reduce the company's dividend. That's to say nothing of the competition it will continue to face from the increasingly popular Amazon Pharmacy.

Unlike Medical Properties Trust, CVS Health has yet to take tangible steps to put its challenges behind it. But given the company's pedigree, it might also be worth considering for dividend seekers who are comfortable with some risk and volatility.

Should you invest $1,000 in Medical Properties Trust right now?

Before you buy stock in Medical Properties Trust, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medical Properties Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $509,884!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $700,739!*

Now, it’s worth noting Stock Advisor’s total average return is 820% — a market-crushing outperformance compared to 158% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 10, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Prosper Junior Bakiny has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends CVS Health. The Motley Fool has a disclosure policy.

As everyone who follows equity markets knows, stocks are feeling the heat from President Donald Trump's macroeconomic policies. On April 3, the president announced sweeping tariffs on goods imported into the U.S. from basically every country on planet Earth.

Some industries have escaped these moves by the administration, at least for now. One of them is the pharmaceutical industry. However, some major executives in the sector are not optimistic, including Eli Lilly's (NYSE: LLY) CEO, David Ricks.

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Let's see what he had to say about the potential impact of tariffs, and what they could mean for those thinking about investing in the company.

A bleak picture of the future

First, let's review the impact that tariffs could have on companies and the economy. According to experts recently interviewed by The Motley Fool, tariffs -- essentially a tax imposed by the government on imported goods -- are generally passed on to importers and consumers.

In other words, they could increase prices for many goods and services. That's not good for consumers, and could be especially problematic when it comes to lifesaving products like pharmaceutical drugs. Perhaps that's why this industry was exempted for now. But Ricks has little confidence things will stay this way, per a recent exclusive interview he gave to the London-based BBC News.

Ricks went further than opining that the current U.S. administration could eventually impose tariffs on pharmaceuticals, saying: "I think it's a pivot in U.S. policy and it feels like it'll be hard to come back from here." He explained that governments in the U.S. and Europe cap the prices of medicines, which would give drugmakers little room to pass the costs of tariffs on to consumers, so they'll have to make adjustments and cuts elsewhere.

Perhaps the first affected area will be research and development (R&D), meaning companies could develop fewer drugs. That's bad for practically every stakeholder involved, including Eli Lilly, its shareholders, and patients who might need those medications.

With this bleak picture in mind, should investors avoid the pharmaceutical industry in general, or Lilly specifically? I believe the answer is a resounding "no." Here's why.

A terrific long-term investment

Eli Lilly is a veteran of the industry. It has been around -- and thrived -- for decades across multiple administrations, changes in regulatory regimes, recessions, and more. No company can accomplish that by accident.

In its current situation, there's little doubt that Lilly will seek ways to get around the problem. In fact, it's already doing so. Lilly recently announced construction projects in the U.S. -- it will build four new manufacturing facilities. That's one way to avoid tariffs imposed by the government: shoring up local manufacturing capacity, so there will be fewer imported goods to tax.

Though these new projects might have been a response to Trump's stated plans to impose tariffs on imported goods, Lilly has been building new facilities in the U.S. (or improving existing ones) for years. The newly announced initiative would more than double its total spending on manufacturing capacity since 2020 to over $50 billion. And since then, Lilly has built new sites or expanded existing ones in North Carolina, Indiana, and Wisconsin.

Eli Lilly can afford it. Net income and adjusted earnings per share have soared in the past five years. While free cash flow hasn't moved in the right direction, that's likely in part due to these investments.

LLY Revenue (Annual) data by YCharts.

Eli Lilly is reaping the benefits from its innovation in diabetes and obesity management, with therapies like Mounjaro and Zepbound generating billions of dollars in annual sales. The company has several other key growth drivers, including newer medicines that should pull its top line in the right direction well into the next decade.

Lilly's pipeline is equally promising, with exciting candidates across many therapeutic areas: oncology, gene therapy, and, of course, its core diabetes and obesity business. That's another reason Eli Lilly has performed so well over the long run: It's an innovative company that's made many significant breakthroughs.

Though tariffs may be hard to come back from, as the CEO argued, the company is about as well-positioned as any of its peers in the industry to handle them. The U.S. is the most lucrative market for drugmakers, so most can't afford to suspend their operations here.

With a significantly expanded manufacturing capacity in the U.S. and proven innovative abilities, Eli Lilly should continue delivering excellent financial results and market-beating returns for a long time. I believe investors should stay put -- and even consider buying more shares while the stock market is in shambles.

Should you invest $1,000 in Eli Lilly right now?

Before you buy stock in Eli Lilly, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $590,231!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of April 5, 2025

Prosper Junior Bakiny has positions in Eli Lilly. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Equity markets may be struggling because of President Donald Trump's current economic policies, but that doesn't mean investors should avoid buying stocks right now -- quite the contrary. History tells us that equities tend to experience strong runs following downturns, so it's worth putting money into excellent companies that are being dragged down with along with the broader market.

To that end, let's consider five excellent growth-oriented companies to invest in on the dip: Novo Nordisk (NYSE: NVO), Eli Lilly (NYSE: LLY), Vertex Pharmaceuticals (NASDAQ: VRTX), Intuitive Surgical (NASDAQ: ISRG), and Shopify (NASDAQ: SHOP).

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Novo Nordisk and Eli Lilly

It might seem odd to group Eli Lilly and Novo Nordisk, but these drugmakers have much in common. They've been the leaders in the diabetes drug market for decades, and both are now pioneering the obesity management space. Novo Nordisk was first to market with Wegovy, an anti-obesity medicine that has become a household name. Eli Lilly then made its move with Zepbound, whose sales are growing incredibly rapidly.

Both companies also have exciting candidates in the pipeline in diabetes and obesity care. Eli Lilly should release data from phase 3 clinical trials for orforglipron, a once-daily oral pill for weight management, sometime this year. Novo Nordisk failed to impress the market with late-stage clinical trial data for CagriSema, an anti-obesity candidate, but it has more potential gems in its pipeline.

Novo Nordisk and Eli Lilly have both seen sales grow rapidly in recent years thanks to their dominance in weight management. And although some observers were worried about their valuations, the current sell-off should take care of that problem.

There are some key differences between these two leading drugmakers. Novo Nordisk is more focused on diabetes than its counterpart; as of November, it held a 33.7% share of the diabetes care market -- remaining flat year over year. Eli Lilly has blockbusters in other areas, such as immunology and oncology.

In the long run, expect somewhat more of the same, though Novo Nordisk should succeed in diversifying its operations. The crucial point is that both companies are innovative drugmakers with deep lineups, pipelines, and significant growth prospects. Now that they've become cheaper in the sell-off, it's a great time to buy.

Vertex Pharmaceuticals

Vertex Pharmaceuticals is another leading drugmaker that famously dominates its market: medicines for cystic fibrosis (CF), a disease that affects internal organs. Vertex develops the only therapies in the world that target the underlying causes of this condition.

The company generates steady revenue and profits. Though it's made tremendous headway in treating CF patients since the early 2010s, there remain many who have yet to start treatment, even among those who are eligible for its current drugs.

Elsewhere, the biotech has expanded its lineup thanks to therapies like Casgevy, which treats a pair of blood-related disorders, and Journavx, a non-opioid pain medication; both should be significant growth drivers. And that's before we look into the pipeline, which boasts several promising candidates.

Vertex Pharmaceuticals' prospects remain attractive, making it a top stock to buy in this downturn.

Intuitive Surgical

Intuitive Surgical is a medical device specialist that dominates the robotic-assisted surgery (RAS) market. The company's crown jewel is the da Vinci system, which is approved for many procedures across multiple areas. The most recent iteration of this device -- the fifth -- is an improvement over previous versions. Though it only received clearance last year, it has already attracted quite a bit of attention, more than analysts expected.

This shows, once again, Intuitive's commitment to innovation. So, despite the threat of competition from healthcare giants like Medtronic and Johnson & Johnson -- both of which are working on RAS devices -- Intuitive Surgical's long-term prospects look attractive. Besides its innovative abilities, Intuitive benefits from a first-mover advantage: It will take years before newcomers jump through all the clinical and regulatory hoops needed to challenge the company's dominance.

Meanwhile, the RAS market remains underpenetrated, with fewer than 5% of eligible procedures being performed robotically. Expect Intuitive to grow its installed base and procedure volume at a good clip in the long run, along with its revenue and earnings. The stock can still provide outsized returns.

Shopify

E-commerce specialist Shopify started the year on a strong note. Its financial results have been strong lately, particularly on the bottom line, where relatively recent changes (getting rid of its logistics business and increasing its prices) are helping boost profits. However, the company has not escaped the market downturn. Still, considering Shopify's position in the e-commerce field -- and the industry's prospects -- this is an excellent opportunity to pick up some shares.

Shopify gives merchants everything they need to start and run an online storefront, with thousands of apps in its app store that cater to merchants' demands beyond the company's basic offerings. It also holds a 12% market share in the U.S. by gross merchandise volume -- that's up from 10% in 2022. And it benefits from a strong competitive advantage based on switching costs.

Meanwhile, e-commerce still accounts for under 20% of total retail commerce in the U.S., one of the world's leaders in the industry. Shopify could ride the increased growth of this market for years and deliver strong returns to loyal, patient shareholders. That's why the stock is worth buying on the dip.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $249,730!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $32,689!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $469,399!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of April 5, 2025

Prosper Junior Bakiny has positions in Eli Lilly, Intuitive Surgical, Johnson & Johnson, Novo Nordisk, Shopify, and Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Intuitive Surgical, Shopify, and Vertex Pharmaceuticals. The Motley Fool recommends Johnson & Johnson, Medtronic, and Novo Nordisk and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.

With equity markets in shambles due to President Donald Trump's trade policies, now might be as good a time as any to invest in excellent dividend stocks.

For one, dividend-paying companies tend to be more resilient than their non-dividend-paying peers. They are more likely to emerge from challenging economic periods in one piece. Second, their regular payouts can help smooth out losses during a downturn. That's precisely what some investors are looking for in this uncertain environment.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

With that said, let's consider two top dividend stocks that should navigate the current storm relatively well and continue performing long after: AbbVie (NYSE: ABBV) and Gilead Sciences (NASDAQ: GILD).

1. AbbVie

AbbVie went public in 2013, splitting from its former parent company, Abbott Laboratories. Since then, the drugmaker has produced market-beating returns.

ABBV Total Return Level data by YCharts

More importantly, the stock has the qualities of a forever investment. AbbVie consistently develops newer medicines to replace older, off-patent ones. It recently successfully navigated the most significant patent cliff in the history of the pharmaceutical industry. The company's rheumatoid arthritis drug Humira, the most lucrative therapy ever, lost U.S. patent exclusivity in early 2023. AbbVie returned to top-line growth last year, and investors can expect it to maintain that momentum.

The drugmaker expects its two immunology superstars, Skyrizi and Rinvoq, to generate about $31 billion in sales by 2027 (they should rack up about $24 billion this year). Humira's sales peaked at $21.2 billion. Further, Skyrizi and Rinvoq should continue their northbound trajectory well into the next decade. These two medicines are more than filling Humira's shoes.

They will eventually run out of patent protection, but AbbVie can handle the most serious patent cliffs as it did with Humira. The company does have other growth drivers -- including its Botox franchise -- not to mention a deep pipeline.

What about its dividend? When counting the time it spent under Abbott Laboratories, AbbVie has increased its payouts for 53 consecutive years. It's not like the drugmaker has been slacking off since 2013, either; its payouts have grown by 310% since its IPO. The stock offers a juicy forward yield of 3.5% and a reasonable cash payout ratio of just under 62%.

AbbVie looks like a fantastic dividend stock to buy and hold for a long time.

2. Gilead Sciences

Gilead Sciences is a leading biotech company that develops products across several therapeutic areas. The company is best known for its work in the HIV drug market, where it is arguably the leader. Last year, Gilead's Biktarvy -- the top-selling HIV regimen in the U.S. -- generated $13.4 billion in sales, 13% higher than the previous fiscal year. Descovy, used for the treatment and prevention of HIV (a leader in the PrEP niche) racked up $2.1 billion in sales, an increase of 6%.

Some might argue that Gilead Sciences is too dependent on its HIV portfolio, which recorded total revenue of $19.6 billion last year, up 8% year over year. The biotech's top line grew 6% to $28.8 billion in 2024. However, the company has been ramping up other parts of its business. Its oncology and liver disease units have grown faster in recent quarters, though they still make up a relatively small portion of its revenue compared to HIV. These other segments should grow in prominence in the coming years.

Gilead Sciences' pipeline features about 30 oncology clinical trials, including several phase 3 studies. And while Veklury -- Gilead Sciences' coronavirus medicine -- had a negative impact on its revenue growth in 2024, the medicine hardly features in the drugmaker's long-term growth plans. Veklury's sales have fluctuated significantly in the past few years.

However, its core franchises -- HIV, oncology, and liver disease -- have slowly and steadily moved in the right direction. In the long run, the company should significantly expand its lineup and continue delivering strong financial results.

Lastly, Gilead Sciences has an attractive dividend track record. The company has increased its payouts by almost 84% in the past 10 years. Its forward yield of 3% and cash payout ratio of 38% look competitive. Income-seeking investors can safely add this stock to their portfolios for good.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $244,570!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $35,715!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $461,558!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Continue »

*Stock Advisor returns as of April 5, 2025

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Gilead Sciences. The Motley Fool has a disclosure policy.