Nordson Corporation (NASDAQ:NDSN) will release earnings for its fourth quarter, after the closing bell on Wednesday, Dec. 11.
Analysts expect the Westlake, Ohio-based company to report quarterly earnings at $2.59 per share — up from $2.46 per share in the year-ago period. Nordson projects to report quarterly revenue of $736.79 million, compared to $719.31 million a year earlier, according to Benzinga Pro.
Nordso investors may be eyeing potential gains from the company's dividends, too. The company currently offers an annual dividend yield of 1.23%. That’s a quarterly dividend amount of 78 cents per share ($3.12 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 $486,269 or around 1,923 shares. For a more modest $100 per month or $1,200 per year, you would need $97,355 or around 385 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.12 in this case). So, $6,000 / $3.12 = 1,923 ($500 per month), and $1,200 / $3.12 = 385 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: The dividend yield is computed 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.
Price Action: Shares of Nordson fell 1% to close at $252.87 on Tuesday.
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