NDSN Dividend
Although NDSN has a dividend of 0.78 with an ex-dividend date of Mar 20, 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 Fri 4:16 PM ET):
Nordson Corporation (NDSN) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
196.82 | 218.11 | 207.40 | +5.41 | 284K | 26 | 12B |
NDSN Dividend-Like Income Using Covered Calls
With NDSN at 207.40, 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% | 6.22 | 1.7 |
5% | 10.37 | 2.8 |
10% | 20.74 | 5.7 |
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 | |
Apr 17 | 220.00 | 2.00 | 35 | 5.7 | 1.89 (0.9%) | |
Sep 19 | 220.00 | 10.30 | 190 | 5.4 | 1.89 (0.9%) |
5% Yield On NDSN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 220.00 | 2.00 | 35 | 5.7 | 1.89 (0.9%) | |
Sep 19 | 220.00 | 10.30 | 190 | 5.4 | 1.89 (0.9%) |
10% Yield On NDSN Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Apr 17 | 220.00 | 2.00 | 35 | 5.7 | 1.89 (0.9%) |
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Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
2. | SPY dividend | 7. | KWEB dividend | 2. | ZIM dividend | |
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Want more examples? NDLS Dividend | NE Dividend