NSC Dividend Type Payments

Norfolk Southern Corp dividend

Although NSC has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Norfolk Southern Corp 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):

Norfolk Southern Corp (NSC)
Bid Ask Last Change Volume P/E Market Cap
32.75 158.93 150.88 -6.64 2.6M - 0.0B

NSC Dividend-Like Income Using Covered Calls

With NSC at 150.88, here's a table showing how big the annual "dividend" (ie. 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% 4.53 1.2
5% 7.54 2.1
10% 15.09 4.1

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 NSC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 162.50 0.10 8 1.3 3.57 (2.4%)
Dec 28 162.50 0.25 15 1.7 3.57 (2.4%)
5% Yield On NSC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Dec 21 160.00 0.25 8 3.1 1.07 (0.7%)
Dec 28 160.00 0.60 15 4.0 1.07 (0.7%)
10% Yield On NSC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jan 4 160.00 1.15 22 5.2 1.07 (0.7%)
Jan 11 160.00 1.60 29 5.5 1.07 (0.7%)

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Want more examples? NSA Dividend | NSIT Dividend