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Nike Co., Ltd. (NYSE:NKE) investors may be looking at the apparel company’s dividend potential.
Nike currently has an annual dividend yield of 1.47% and a quarterly dividend of 37 cents per share ($1.48 per year).
So how can investors take advantage of that dividend yield and get their regular $500 every month?
To earn $500 a month in dividends alone, or $6,000 a year, you would need to invest approximately $408,724, or approximately 4,054 shares. For a more modest $100 per month or $1,200 per year, you would need $81,765 or about 811 shares.
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To calculate: Divide your desired annual salary ($6,000 or $1,200) by the dividend (in this case $1.48). So $6,000 / $1.48 = 4,054 shares ($500 per month) and $1,200 / $1.48 = 811 shares ($100 per month).
Keep in mind that dividend yields can change periodically, as dividends and stock prices fluctuate over time.
See more earnings at NKE
How it works: Dividend yield is calculated by dividing the annual dividend by the stock price.
For example, if a stock pays an annual dividend of $2 and the current price is $50, the dividend yield is 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 increases to 5% ($2/$40).
Similarly, changes in dividends can also affect yields. If a company increases its dividend, the yield will also increase if the stock price remains the same. Conversely, if the dividend decreases, the yield will also decrease.
NKE price action: Nike stock rose 0.6% to close at $100.82 on Thursday after the company announced third-quarter profits and sales that beat expectations.
The company’s third-quarter revenue was $12.429 billion, up slightly year-over-year and beating the street consensus estimate of $12.281 billion, according to data from Benzinga Pro.
Read more: Insiders are selling Alphabet, Jabiru and 2 other stocks
Image: Pixabay
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The article How to Make $500 a Month from Nike Stocks After Strong Q3 Earnings originally appeared on Benzinga.com.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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