NDSN Dividend Type Payments
Although NDSN has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Nordson Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Thu 11:00 AM ET):
| Nordson Corporation (NDSN) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 215.86 | 216.56 | 216.11 | +0.56 | 47K | 27 | 12B |
NDSN Dividend-Like Income Using Covered Calls
With NDSN at 216.11, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
| Annual Yield | Annual Premium | Cents/Day |
|---|---|---|
| 3% | 6.48 | 1.8 |
| 5% | 10.81 | 3.0 |
| 10% | 21.61 | 5.9 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
| 3% Yield On NDSN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 220.00 | 16.00 | 226 | 7.1 | 3.44 (1.6%) | |
| Jun 20 | 220.00 | 12.30 | 135 | 9.1 | 3.44 (1.6%) | |
| 5% Yield On NDSN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 220.00 | 16.00 | 226 | 7.1 | 3.44 (1.6%) | |
| Jun 20 | 220.00 | 12.30 | 135 | 9.1 | 3.44 (1.6%) | |
| 10% Yield On NDSN Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| Sep 19 | 220.00 | 16.00 | 226 | 7.1 | 3.44 (1.6%) | |
| Jun 20 | 220.00 | 12.30 | 135 | 9.1 | 3.44 (1.6%) | |
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| Top 10 Open Interest For Feb 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | TSLA dividend | 1. | BILL dividend | |
| 2. | TLT dividend | 7. | QQQ dividend | 2. | NET dividend | |
| 3. | SPY dividend | 8. | SLV dividend | 3. | AFRM dividend | |
| 4. | IWM dividend | 9. | KWEB dividend | 4. | PINS dividend | |
| 5. | FXI dividend | 10. | GLD dividend | 5. | FTNT dividend | |
Want more examples? NDLS Dividend | NE Dividend
