the article is about how to make $500 every month from owning shares of a company called Eli Lilly. Shares are like little pieces of a company that people can buy to own a tiny part of it. if the company does well, the value of the shares can go up and people can make money from it.
the article says that to make $500 a month, you would need to own a lot of shares (about 1,154) of Eli Lilly. it's like having lots of little pieces of the company. to get those shares, you would need to spend a lot of money (around $915,330) to buy them all.
making money from shares can be tricky because the value of the shares can go up and down depending on how well the company is doing. the article mentions that the dividend yield, which is how much money the company pays to share owners every year, can change over time too. so, owning shares of Eli Lilly and hoping to make $500 a month can be risky, but it could also be worth it if the company does really well.
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1. Biased statement: "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."
2. Irrational argument: "To earn $500 monthly from Eli Lilly, start with a yearly target of $6,000 ($500 x 12 months)."
3. Emotional behavior: "Further, the dividend payment itself can also change over time, which can also impact the dividend yield."
4. Inconsistent data: "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."
5. Unlogical connection: "Note that dividend yield can change on a rolling basis (the dividend payment and the stock price fluctuate over time)."
1. Eli Lilly is a good stock to invest in, with expected Q2 earnings at $2.60 per share, and a revenue projection of $9.92 billion. The company currently has a dividend yield of 0.66%, which is expected to grow over time.
2. To earn $500 a month from Eli Lilly, 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. This could be a risky investment for those with a low risk tolerance due to the high amount of shares needed.
3. A more conservative goal of $100 monthly dividend income would require owning 231 shares of Eli Lilly, or $183,225 worth of shares. This could be a safer investment option for those who are more risk-averse.
4. The dividend yield is calculated by dividing the annual dividend payment by the current stock price, and can change on a rolling basis as the stock price fluctuates over time.
5. Eli Lilly shares gained 2.3% to close at $793.18 on Tuesday. This indicates a positive market sentiment towards the stock, which could be a good sign for potential investors.
Overall, while investing in Eli Lilly could potentially yield high returns, it is also important for investors to carefully consider the risks and their own risk tolerance before making any investment decisions.