Avi Kapoor
2 min read
In This Article:
NIKE, Inc (NYSE:NKE) will release earnings results for the fourth quarter, after the closing bell on Thursday, June 26.
Analysts expect the Beaverton, Oregon-based company to report quarterly earnings at 13 cents per share. That’s down from 99 cents per share in the year-ago period. Nike projects to report quarterly revenue at $10.72 billion, compared to $12.61 billion a year earlier, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in two straight quarters and beaten estimates in six of the last 10 quarters overall.
With the recent buzz around Nike, some investors may be eyeing potential gains from the company's dividends too. As of now, Nike offers an annual dividend yield of 2.63%, which is a quarterly dividend amount of 40 cents per share ($1.60 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $228,113 or around 3,750 shares. For a more modest $100 per month or $1,200 per year, you would need $45,623 or around 750 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.60 in this case). So, $6,000 / $1.60 = 3,750 ($500 per month), and $1,200 / $1.60 = 750 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
NKE Price Action: Shares of Nike fell 1% to close at $60.83 on Wednesday.
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