Nordson Corporation (NASDAQ:NDSN) will release second-quarter earnings after the closing bell on May 20.
That’s the same day Daniel Hopgood begins tenure as executive vice president and chief financial officer.
Analysts expect the Westlake, Ohio-based company to report quarterly earnings at $2.31 per share. That’s up from $2.26 per share in the year-ago period. Nordson is projected to post revenue of $661.41 million, according to Benzinga Pro.
With the recent buzz around Nordson, some investors may be eyeing potential gains from the company’s dividends too. Nordson currently offers an annual dividend yield of 1.01%, which is a quarterly dividend amount of 68 cents per share ($2.72 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $596,855 or around 2,206 shares. For a more modest $100 per month or $1,200 per year, you would need $119,317 or around 441 shares.
Read This: Top 5 Utilities Stocks You May Want To Dump In May
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.72 in this case). So, $6,000 / $2.72 = 2,206 ($500 per month), and $1,200 / $2.72 = 441 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How That Works: We compute the dividend yield by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
NDSN Price Action: Shares of Nordson fell 1.5% to close at $270.56 on Thursday.
Read More: Oklo Is ‘Too Risky,’ Jim Cramer Says: Buy This General Electric Spinoff Instead
“ACTIVE INVESTORS’ SECRET WEAPON” Supercharge Your Stock Market Game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article How To Earn $500 A Month From Nordson Stock Ahead Of Q2 Earnings originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.