How To Earn $500 A Month From Eli Lilly Stock Ahead Of Q2 Earnings

Eli Lilly and Company LLY is expected to release earnings results for its second quarter, before the opening bell on Thursday, Aug. 8.

Analysts expect the Indianapolis-based company to report quarterly earnings at $2.60 per share, up from $2.11 per share in the year-ago period. Eli Lilly is projected to post revenue of $9.92 billion, compared to $8.31 billion a year earlier, according to data from Benzinga Pro.

Some investors may be eyeing potential gains from the company's dividends. Eli Lilly currently has a dividend yield of 0.66%. That’s a quarterly dividend amount of $1.30 a share ($5.20 a year).

To earn $500 monthly from Eli Lilly, start with a yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Eli Lilly's $5.20 dividend: $6,000 / $5.20  = 1,154 shares

So, an investor would need to own approximately $915,330 worth of Eli Lilly, or 1,154 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $5.20 = 231 shares, or $183,225 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis (the dividend payment and the stock price fluctuate over time).

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

LLY Price Action: Shares of Eli Lilly gained 2.3% to close at $793.18 on Tuesday.

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