Nike, Inc. (NYSE:NKE) will release earnings results for the first quarter, after the closing bell on Tuesday, Sept. 30.
Analysts expect the apparel maker to report quarterly earnings at 27 cents per share. That’s down from 70 cents per share in the year-ago period. Lamb Weston projects to report quarterly revenue at $11.00 billion. A year earlier, Nike reported $11.59 billion, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in three consecutive quarters and 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 2.31%, which is a quarterly dividend amount of 40 cents per share ($1.60 a year).
To figure out how to earn $500 monthly from Nike, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Nike’s $1.60 dividend: $6,000 / $1.60 = 3,750 shares.
So, an investor would need to own approximately $260,813 worth of Nike, or 3,750 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.60 = 750 shares, or $52,163 to generate a monthly dividend income of $100.
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 calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
NKE Price Action: Shares of Nike gained by 0.4% to close at $69.55 on Monday.
