Nike Inc (NYSE: NKE) investors may be eyeing potential gains from the apparel company’s dividends. Currently, Nike offers an annual dividend yield of 1.47%, which equates to a quarterly dividend amount of 37 cents per share ($1.48 a year).
For investors looking to exploit Nike’s dividend yield to pocket a regular $500 monthly, they would need an investment of approximately $408,724 or around 4,054 shares. For a more modest $100 per month or $1,200 per year, investors would need $81,765 or around 811 shares.
To calculate the number of shares needed to achieve a desired annual income from dividends alone, one must divide the desired annual income by the dividend amount. For example, to earn $500 per month, one would divide $6,000 by $1.48, which equals 4,054 shares. For $100 per month, one would divide $1,200 by $1.48, which equals 811 shares.
It is important to note that dividend yield can change on a rolling basis as the dividend payment and the stock price both fluctuate over time. The dividend yield is computed by dividing the annual dividend payment by the stock’s current price. Changes in the dividend payment or the stock price can impact the yield accordingly.
In recent news, Nike reported better-than-expected earnings and sales results for its third quarter, which led to a 0.6% gain in its stock price to close at $100.82. The company reported third-quarter revenue of $12.429 billion, slightly up year-over-year and ahead of the Street consensus estimate.
Overall, Nike’s consistent dividend payouts and positive financial performance make it an attractive option for investors looking to generate income from dividends. As always, investors should conduct thorough research and consult with a financial advisor before making any investment decisions.
