One of the reasons dividend investors enjoy being long term investors is the company makes profits on a yearly basis which allows the company to make capital choices. Being biased, returning the company to investors either by dividends or by buying back stock is always a great choice, but investing and expanding the business is also a good allocation of capital.

In an article from Reuters, Eli Lilly’s cash is boosted by demand for its obesity drugs. This allows the company to make acquisitions. The deals mark the renewed move into infectious disease space, as the strategy for Eli Lilly is to prevent disease at its source rather than treat its consequences, says Daniel Skovronsky, Lilly’s chief scientific and product officer. The deal is to $4 billion for 3 companies named Curevo, LimmaTech Biologics, and Vaccine Company.

Citi analyst Geoffrey Meacham said we think this is a well-balanced foray into a new area and each company’s lead asset could bring substantial market opportunity and platform validation for future products.

The focus of each of the vaccine developers highlights viral pathogens linked to long-term neurological and oncology risks, which are in line with Lilly’s existing interests.

Linking to dividend paying stocks, growth is wonderful, but it has to be carefully measured to ensure the growth adds value and make profits. There are often reasons why areas are overlooked and they relate to making money. Why will the area make money for the company. as an investor you need to some element of cynicism in your evaluation. Asking more whys is good?

There are more questions than answers, till the next time – to raising questions.