This article talks about how someone can make money from a company called Eli Lilly by buying their stocks. The company will tell everyone how well they did in the last few months on Feb. 6, 2024. People think the company did better than before and made more money. Read from source...
1. The title of the article is misleading and exaggerated. It implies that investing in Eli Lilly stock will guarantee a monthly income of $500, which is not true for any stock or investment. This creates unrealistic expectations and fails to mention the risks and factors involved in such an investment strategy.
To earn $500 a month from Eli Lilly stock ahead of Q4 earnings report, you would need to own at least $246,882 worth of shares. This is based on the current dividend yield of 3.19% and assuming no change in the dividend payout ratio or the share price. However, this does not account for any capital gains or losses that may occur due to market fluctuations, company performance, or other factors. Therefore, you should be prepared for some volatility and uncertainty in your investment returns.
A more conservative goal of $100 monthly dividend income would require owning 526 shares of Eli Lilly, which is worth about $349,867 at the current share price of $673.63. This reduces your exposure to market risks and allows you to achieve your financial goal with less capital. However, it also means that you will receive a lower dividend income per share and miss out on some potential upside if the stock price increases or the dividend rate improves.
Eli Lilly is expected to report its Q4 earnings on Feb. 6, 2024, after the market close. Analysts are optimistic about the company's performance, as they forecast an increase in both earnings and revenue compared to the same period last year. This could boost the stock price and the dividend yield, making it a favorable time to invest in Eli Lilly. However, there are also some risks that could negate or offset these positive factors, such as:
- The outcome of the ongoing discussions with the German government regarding the potential acquisition of a stake in Eli Lilly's animal health business. This deal could be worth up to $2.4 billion and would increase the company's exposure to the growing pet care market, but it also comes with regulatory, financial, and strategic challenges that could impact the stock price and the dividend sustainability.
- The impact of any adverse events or safety concerns related to Eli Lilly's products or pipeline. As a pharmaceutical company, Eli Lilly faces various risks associated with its research and development, manufacturing, marketing, and distribution activities. Any negative news or issues could damage the company's reputation, revenue, earnings, and dividend payout ratio, which could hurt your investment performance.
- The competition from other pharmaceutical companies, generics, and biosimilars in the market. Eli Lilly operates in a highly competitive industry, where innovation, patent protection, pricing, and customer loyalty are key factors that determine success or failure. If Eli Lilly fails