Nordson Corporation (NDSN) is gearing up to release its third-quarter earnings results after the closing bell on Wednesday, August 21. Analysts are projecting earnings of $2.33 per share, a slight decrease from $2.35 per share in the same period last year. Revenue for the quarter is estimated to reach $656.23 million, according to data from Benzinga Pro.
Adding to the interest surrounding Nordson is the recent announcement of its board raising the dividend from 68 cents to 78 cents per share on August 14. This move has caught the attention of investors seeking potential dividend gains, particularly in light of the recent buzz around Lowe’s. Nordson currently offers an annual dividend yield of 1.30%, translating to a quarterly dividend payment of 78 cents per share ($3.12 annually).
For investors seeking to leverage this dividend yield to generate passive income, here’s a breakdown of the investment amounts needed to achieve specific monthly dividend payouts:
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To earn $500 per month or $6,000 annually:
An investment of approximately $460,501 or around 1,923 shares would be required.*
For a more modest $100 per month or $1,200 per year:
The investment needed would be $92,196 or approximately 385 shares.These calculations are based on the current annual dividend of $3.12. To determine the necessary investment, you can simply divide the desired annual income by the dividend amount. For example, $6,000 / $3.12 = 1,923 shares for a $500 monthly dividend.
It’s important to note that dividend yield is subject to change over time as both dividend payments and stock prices fluctuate. The dividend yield is calculated by dividing the annual dividend payment by the stock’s current price.
For instance, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4%. However, if the stock price rises to $60, the yield drops to 3.33%. Conversely, if the stock price falls to $40, the yield increases to 5%. Similarly, changes in the dividend payment impact the yield. Increasing the dividend payment while keeping the stock price constant will result in a higher yield. Conversely, decreasing the dividend payment will lower the yield.
Shares of Nordson closed at $239.47 on Tuesday, down 0.1%. As Nordson prepares to release its earnings results, investors will be closely watching for any updates on the company’s future dividend plans and overall financial performance.
