How To Earn $500 A Month From Nordson Stock Ahead Of Q3 Earnings Report

Nordson Corporation NDSN will release earnings results for its third quarter after the closing bell on Wednesday, Aug. 21.

Analysts expect the Westlake, Ohio-based company to report quarterly earnings at $2.33 per share, down from $2.35 per share in the year-ago period. Nordson projects to report quarterly revenue of $656.23 million for the quarter, according to data from Benzinga Pro.

On Aug. 14, Nordson's board raised its dividend from 68 cents to 78 cents per share.

With the recent buzz around Lowe’s, some investors may be eyeing potential gains from the company's dividends too. As of now, Nordson offers an annual dividend yield of 1.30%. 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 $460,501 or around 1,923 shares. For a more modest $100 per month or $1,200 per year, you would need $92,196 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.

NDSN Price Action: Shares of Nordson fell 0.1% to close at $239.47 on Tuesday.

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