Why Two Trillion-Dollar Giants Deserve a Spot in Your Long-Term Portfolio

The Case for Dividend Growth Investors

When most people think of mega-cap companies worth $1 trillion or more, dividend income rarely comes to mind. Yet Microsoft and Eli Lilly prove that industry dominance and reliable income streams aren’t mutually exclusive. Both companies have demonstrated the ability to compound wealth through capital appreciation while consistently rewarding shareholders—making them compelling holdings for the next decade.

Microsoft: Cloud and AI Fuel Unstoppable Growth

Microsoft reached $4 trillion in market valuation earlier this year, cementing its position as one of the world’s most valuable enterprises. While valuations have since moderated, the company’s operational fundamentals remain robust.

The tech giant’s fiscal Q1 2026 revenue climbed to $77.7 billion, representing 18% year-over-year growth. But the real story lies in Azure, its cloud computing division, which expanded 40% annually. This acceleration reflects surging demand for artificial intelligence infrastructure and services—a trend unlikely to lose momentum soon.

Perhaps most tellingly, Microsoft’s contracted obligations within its cloud segment reached $392 billion at quarter-end, up 51% year-over-year. The company’s strategic partnership with OpenAI—including IP rights to the startup’s models through 2032 and a fresh $250 billion Azure commitment—positions Microsoft as the dominant infrastructure provider for enterprise AI deployments.

For dividend growth investors, the story extends beyond growth. While the forward yield of 0.8% trails the S&P 500 average of 1.2%, what matters is the trajectory: Microsoft has increased its dividend payout by 152.8% over the past decade. Consistent and substantial payout hikes make this stock attractive for those seeking both growth and income.

Eli Lilly: Dominance in High-Growth Markets

Eli Lilly recently ascended to trillion-dollar status, driven by breakthroughs in pharmaceutical innovation. The company’s game-changing drug tirzepatide—branded as Mounjaro for diabetes and Zepbound for weight loss—has become the world’s best-selling medicine after capturing market share from competitors.

The weight management sector represents one of the fastest-growing pharmaceutical markets. Tirzepatide’s success extends beyond its core indications; emerging applications in obstructive sleep apnea and Alzheimer’s disease research are expanding addressable markets substantially. While competitor semaglutide encountered a setback in Alzheimer’s trials, tirzepatide has already demonstrated superior efficacy in approved uses, providing a competitive moat.

Beyond this single blockbuster, Eli Lilly’s pipeline ranks among the most impressive in the industry. The company is pursuing multiple approaches to weight management—exploring different dosing frequencies, oral formulations, alternative hormonal pathways beyond GLP-1, and combination therapies targeting multiple mechanisms. Many candidates have already shown strong midstage and late-stage trial results.

This competitive positioning should allow Eli Lilly to maintain pricing power and market leadership through the coming decade, translating to sustained earnings growth. Despite a modest 0.6% forward yield, Eli Lilly has increased dividends by 194% over ten years—a testament to exceptional business performance and shareholder-friendly capital allocation that appeals strongly to dividend growth investors.

The Long-Term Appeal

Both companies offer what most trillion-dollar enterprises cannot: genuine near-term growth catalysts paired with disciplined capital returns. For investors comfortable with a 10-year horizon, these holdings provide the potential for substantial total returns—comprising both appreciation and reinvested dividend growth.