Eli Lilly and Company (NYSE:LLY) will release its second-quarter earnings report before the opening bell on Wednesday, Aug. 5.

Analysts expect the company to report quarterly earnings of $6.58 per share, up from $6.31 per share in the year-ago period. The consensus estimate for Eli Lilly’s quarterly revenue is $20.69 billion. It reported $15.56 billion last year, according to Benzinga Pro.

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 has an annual dividend yield of 0.62%, which is a quarterly dividend amount of $1.73 per share ($6.92 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 $972,219 or around 867 shares. For a more modest $100 per month or $1,200 per year, you would need $193,995 or around 173 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($6.92 in this case). So, $6,000 / $6.92 = 867 ($500 per month), and $1,200 / $6.92 = 173 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 fell 2.4% to close at $1,121.36 on Monday.

As per the recent news, Lilly’s olomorasib received the FDA’s Breakthrough Therapy designation on Monday for the treatment of previously treated KRAS G12C-mutant advanced pancreatic cancer.

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