07-19-2013, 09:04 AM
LLY is not a stock that I follow, so I can't speak intelligently about it, but your reasoning seems sound. If the pay freeze is fact (and not rumor), I'd say that is a pretty strong sign that they are not confident about earnings. How has earnings history been? I agree that 3.9 percent is nice, but sounds like this is not a dividend growth stock, and before long, it may not be deteriorating as even just a straight dividend stock. Getting out with a slight gain seems prudent to me!