Nike Inc FROM Investors may want to keep an eye on the clothing company’s potential dividend earnings.
Nike currently offers an annual dividend yield of 1.47%, or a quarterly dividend of 37 cents per share ($1.48 per year).
So, how can investors leverage its dividend yield to regularly pocket $500 a month?
To earn $500 per month or $6,000 per year from dividends alone, you would need an investment of approximately $408,724 or approximately 4,054 shares. For a more modest amount of $100 a month or $1,200 a year, you would need $81,765 or about 811 shares.
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To calculate: Divide your desired annual income ($6,000 or $1,200) by the dividend ($1.48 in this case). So, $6,000 / $1.48 = 4,054 ($500 per month) and $1,200 / $1.48 = 811 shares ($100 per month).
Keep in mind that the dividend yield can change on an ongoing basis, as the dividend payment and the stock price both fluctuate over time.
How does it work: The dividend yield is calculated by dividing the annual dividend payment by the current price of the stock.
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 rises 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).
Likewise, changes in dividend payments can impact yield. If a company increases its dividend, the yield will also increase, as long as the share price remains the same. Conversely, if the dividend payment decreases, the yield will also decrease.
OF Price Action: Nike shares gained 0.6% to close at $100.82 on Thursday after the company reported better-than-expected earnings and sales results for the third quarter.
According to data from Benzinga Pro, the company reported third-quarter revenue of $12.429 billion, up slightly from a year earlier and above the Street consensus estimate of $12.281 billion.
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