uploads/2019/02/Graph-5-7-1.png

Comparing AstraZeneca’s and Eli Lilly’s Dividends

By

Updated

Dividend projections

In fiscal 2018, AstraZeneca (AZN) and Eli Lilly (LLY) reported dividends per share of $1.40 and $2.25, respectively. Analysts expect AstraZeneca’s dividend per share to be $1.41, $1.42 and $1.40 in fiscal 2019, fiscal 2020, and fiscal 2021, respectively. These projections imply YoY (year-over-year) changes of 0.36%, 0.71%, and -1.06%. In its fourth-quarter conference call, AstraZeneca said it expects to be able to cover its dividends without relying on its balance sheet by 2020.

Article continues below advertisement

Analysts expect Eli Lilly’s dividend per share to be $2.46, $2.55 and $2.65 in fiscal 2019, fiscal 2020, and fiscal 2021, respectively, implying YoY changes of 9.37%, 3.53%, and 3.88%. In its fourth-quarter conference call, Eli Lilly stated it returned $600 million as dividends and $1.1 billion as share buybacks to shareholders in fiscal 2018. It plans to hike up its dividend per share by 15% YoY in fiscal 2019. In addition to paying higher absolute dividends per share, Eli Lilly is expected to report a faster YoY rise in its dividend per share than AstraZeneca.

Capital expenditure

Analysts expect AstraZeneca’s capital expenditure to be $1.20 billion, $1.17 billion, and $1.20 billion in fiscal 2019, fiscal 2020, and fiscal 2021, respectively, implying YoY changes of 15.44%, -2.96%, and 2.57%. In its fourth-quarter earnings conference call, AstraZeneca forecast stable capital expenses and lower restructuring expenses in fiscal 2019.

Analysts expect Eli Lilly’s capital expenditure to be $1.22 billion, $1.31 billion, and $1.33 billion in fiscal 2019, fiscal 2020, and fiscal 2021, respectively, implying YoY changes of 0.79%, 7.50%, and 1.01%. In its fourth-quarter earnings conference call, Eli Lilly said it is focused on deploying its operating cash flow toward exploring innovative external assets and advancing its internal pipeline.

Therefore, Eli Lilly is expected to spend more on capital expenses than AstraZeneca. Next, we’ll discuss AstraZeneca’s and Eli Lilly’s tax rate and debt trends.

 

Advertisement

More From Market Realist