Eli Lilly and Company (NYSE:LLY) will release earnings results for the second quarter before the opening bell on Thursday, Aug. 7.
Analysts expect the health care company to report quarterly earnings at $5.59 per share, up from $3.92 per share in the year-ago period. Eli Lilly projects to report quarterly revenue of $14.67 billion, compared to $11.3 billion a year earlier, according to data from Benzinga Pro.
With the recent buzz around Eli Lilly, some investors may be eyeing potential gains from the company's dividends. Currently, Eli Lilly offers an annual dividend yield of 0.78% — a quarterly dividend amount of $1.50 per share ($6.00 a year). So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need:
- An investment of approximately $765,950 or around 1,000 shares.
- For a more modest $100 per month or $1,200 per year, you would need $153,190 or around 200 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($6.00 in this case). So, $6,000 / $6.00 = 1,000 ($500 per month), and $1,200 / $6.00 = 200 shares ($100 per month).
The dividend yield can change on a rolling basis, as the dividend payment and the stock price fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is priced at $50, the yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
LLY Price Action: Shares of Eli Lilly fell 0.4% to close at $765.95 on Tuesday.
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