NDSN Dividend Type Payments

Nordson Corporation dividend

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 Tue 4:16 PM ET):

Nordson Corporation (NDSN)
Bid Ask Last Change Volume P/E Market Cap
179.04 202.15 188.76 +0.06 245K 24 11B

NDSN Dividend-Like Income Using Covered Calls

With NDSN at 188.76, 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% 5.66 1.6
5% 9.44 2.6
10% 18.88 5.2

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 19 210.00 5.70 144 4.0 7.85 (4.2%)
Dec 19 210.00 10.40 235 4.4 7.85 (4.2%)
5% Yield On NDSN Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Sep 19 210.00 5.70 144 4.0 7.85 (4.2%)
Dec 19 210.00 10.40 235 4.4 7.85 (4.2%)

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