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Eli Lilly and Company (LLY)
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Harvest Healthcare Leaders Income ETF (HHL)
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Evolve Global Healthcare Enhanced Yield Fund (LIFE)
Q: In a recent question on LLY, you said "President Trump is about to sign an executive order that would likely slash the cost of drugs (and hence the profits for maker) on a slew of popular, expensive products".
What effect will this have on the price and dividends paid by HHL.to and LIFE.to ?
What effect will this have on the price and dividends paid by HHL.to and LIFE.to ?
5i Research Answer:
Keep in mind that at this point nothing is official, but markets are a little concerned. But at the same time, the healthcare sector has ALWAYS been political. If the sector does get hit, LIFE and HHL will not be immune, but they will still generate call option income. So distributions will be paid, and the income may cushion any downfall somewhat.