3 Pharmaceutical Growth Stocks to Buy and Hold for 10 Years

For many investors, getting involved with pharmaceutical stocks involves finding inexpensive stocks, often penny stocks, in hopes of investing in a breakthrough treatment for cancer, Alzheimer’s disease, or a rare disease. It’s understandable; finding stocks like these could lead to life-changing returns.

But investing this way requires more than a high risk tolerance. Even for companies with a “sure thing” in the pipeline, it can take years to move a drug through the clinical trial stage. During that time, stock prices can be affected by traders attempting to aggressively buy or short the stock.

That volatility is enough to cause some investors to steer clear of these stocks and the sector. However, there is an alternative beyond this binary decision. There are several large-cap pharmaceutical stocks that offer stability to go along with the opportunity for future growth. They're called “big pharma” for a reason, and that’s why these are stocks that investors can hold for the long haul.

GLP-1 Leadership and a Growing Pipeline of Breakthrough Drugs

Eli Lilly & Co. (NYSE: LLY) has been a top performer and pioneer in GLP-1 drugs. The market for the company’s obesity and type-2 diabetes drugs is likely to expand in the next decade. Eli Lilly is also working to get these drugs approved for new indications, such as sleep apnea, that can increase the addressable market even more.

That may be enough reason to buy and hold LLY stock, which is expected to increase earnings by over 34% in the next 12 months. But there’s more to the story. The company’s robust pipeline includes treatments for Alzheimer’s disease and cardiovascular disease. In fact, Eli Lilly received FDA approval for its Alzheimer’s disease drug, Donanemab.

In the last 10 years, LLY stock has delivered a total return of over 1,141%. That includes the company’s dividend. It only yields 0.74%, but the company has increased its payout in each of those 10 years. As of the market close on Oct. 21, LLY stock is up around 4% in 2025, but 16% below analysts’ consensus price target, which makes it a good stock to buy on the dip.

Dividend King Reinventing Growth Beyond Humira

It's impossible to talk about buy-and-hold pharmaceutical stocks without bringing up AbbVie Inc. (NYSE: ABBV). ABBV stock has delivered a total return of over 540% in the last 10 years. That includes the company’s dividend. Not only does that dividend have the highest payout of all the stocks on this list, but AbbVie is a Dividend King, a rare group of companies that have increased their dividend for at least 50 consecutive years.

The company’s blockbuster drug, Humira, is no longer under patent protection. While that was expected to negatively impact revenue, this is an example of where these large-cap names show their strength.

While Humira sales are down, AbbVie has made up for that revenue hit with drugs like Rinvoq and Skyrizi, which do have patent protection. In fact, in the company’s most recent earnings report, revenue was up 6.6% year over year.

Oncology Innovation Driving Long-Term Growth

For investors looking beyond the United States, AstraZeneca (NASDAQ: AZN) is a name to watch. The company has a diverse portfolio of drugs, particularly in oncology. Plus, AstraZeneca has a pipeline with over 120 drugs.

It also offers a dividend, with a yield of 1.2%, providing income alongside long-term growth potential.

In October, the company reported successful clinical trial results for Enhertu, a breast cancer drug in its pipeline. Enhertu is known as an antibody drug conjugate (ADC), which is a more precise, targeted type of “smart chemotherapy.”

The drug is designed to reduce the risk of breast cancer relapse in early-stage patients. The company believes Enhertu will add up to $10 billion to its sales in the next five years.

AZN stock is up around 26% in 2025. That's consistent with the stock’s 10-year total return of 212%—an average of around 20% per year. However, it’s about 3% below the analysts’ consensus price target.

Companies Mentioned in This Article: