How To Earn $500 A Month From Eli Lilly Stock Ahead Of Q4 Earnings Report

Eli Lilly and Company LLY is expected to release earnings results for its fourth quarter, before the opening bell on Feb. 6, 2024.

Analysts expect the Indianapolis-based company to report quarterly earnings at $2.19 per share, up from $2.09 per share in the year-ago period. Eli Lilly is projected to post revenue of $8.93 billion, compared to $7.3 billion in the year-earlier quarter, according to data from Benzinga Pro.

The firm is reportedly engaged in discussions with the German government to lift the ban on the public health system covering the costs of weight-loss treatments.

With the recent buzz around Eli Lilly, some investors may be eyeing potential gains from the company’s dividends too. As of now, Eli Lilly offers an annual dividend yield of 0.78%, which is a quarterly dividend amount of $1.30 per share ($5.20 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 $770,468 or around 1,154 shares. For a more modest $100 per month or $1,200 per year, you would need $154,227 or around 231 shares.

See Also: Top 4 Tech And Telecom Stocks That May Crash In January

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.20 in this case). So, $6,000 / $5.20 = 1,154 ($500 per month), and $1,200 / $5.20 = 231 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both 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 currently priced at $50, the dividend 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 gained 1.1% to close at $667.65 on Friday.

Hedge funds intend to snatch all pre-IPO shares of future AI unicorns before you can. But there is one venture product investing on your behalf.

Image: Shutterstock