Lilly’s Dividend Is Holding Strong

This hasn’t been a very good year for Eli Lilly (LLY). The shares are down again today on news that it will halt development of semagacestat, a potential Alzheimer’s treatment.
The preliminary tests just weren’t working out. Lilly said that this will result in a Q3 charge of three to four cents per share. That’s bad but not awful.Lilly confirmed its previous 2010 earnings per share guidance range of $4.44 to $4.59 on a reported basis, or $4.50 to $4.65 on a non-GAAP basis (consensus is for $4.61).
As rough as this year has been, Daniel Lee notes that one bright spot has been the stock’s dividend. Lilly currently pays out a 49-cent dividend. That comes to $1.96 per share per share. At the current price of $34.72, Lilly yields 5.6% which is well more than double the 10-year T-bond yield. Lilly has also paid a dividend for the last 125 years.

Posted by on August 17th, 2010 at 10:07 am


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