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 Wed 4:16 PM ET):

Norfolk Southern Corp (NSC)
Bid Ask Last Change Volume P/E Market Cap
190.23 192.27 191.02 -15.44 4.4M 21 55B

NSC Dividend-Like Income Using Covered Calls

With NSC at 191.02, 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% 5.73 1.6
5% 9.55 2.6
10% 19.10 5.2

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
Jul 19 205.00 0.05 3 1.7 12.73 (6.7%)
Jul 26 210.00 0.30 10 3.0 17.73 (9.3%)
5% Yield On NSC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 200.00 0.10 3 3.3 7.73 (4.0%)
Jul 26 210.00 0.30 10 3.0 17.73 (9.3%)
10% Yield On NSC Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 195.00 0.75 3 25.0 2.73 (1.4%)
Jul 26 205.00 0.65 10 6.5 12.73 (6.7%)

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Want more examples? NSA Dividend | NSIT Dividend