NAPCO Security Technologies Offers Attractive Dividend Yield Over 2%
In trading on Thursday, shares of NAPCO Security Technologies, Inc. (Symbol: NSSC) yielded above 2% based on its quarterly dividend of $0.56, with prices reaching as low as $27.96 for the day. Dividends are crucial for investors since they historically account for a significant part of the stock market’s total return. For example, consider the iShares Russell 3000 ETF (IWV). If you purchased shares on May 31, 2000, at $78.27 each, the price would have dropped to $77.79 by May 31, 2012—a decline of $0.48 or 0.6%. However, during that period, you would have received $10.77 per share in dividends, pushing your return to 13.15%. Even when considering reinvested dividends, the average annual total return would only be around 1.0%. Thus, a sustainable yield above 2% appears quite appealing.
NAPCO Security Technologies, Inc. is part of the Russell 3000, placing it among the largest U.S. companies within the stock markets.
Evaluating Dividend Sustainability
Generally, dividend amounts can fluctuate based on a company’s profitability. Analyzing the historical dividend chart for NSSC can help assess whether the recent dividend is likely to continue, making the expectation of a 2% annual yield more reasonable.
Click here to find out which 9 other dividend stocks just recently went on sale »
Additional Insights:
- Las Vegas Sands DMA
- RNRG market cap history
- MNRK Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
