How To Earn $500 A Month From Nike Stock Ahead Of Q4 Earnings

NIKE, Inc. NKE is set to release earnings results for its fourth quarter, after the closing bell on Thursday.

Analysts expect the Beaverton, Oregon-based company to report quarterly earnings at 83 cents per share. That’s up from 66 cents per share in the year-ago period.

Nike will post revenue of $12.85 billion for the quarter, compared to $12.82 billion a year earlier, according to data from Benzinga Pro.

On June 21, Oppenheimer analyst Brian Nagel upgraded Nike from Perform to Outperform and raised the price target from $110 to $120.

With the recent buzz around Nike, some investors may be eyeing potential gains from the company's dividends, too. Nike currently offers an annual dividend yield of 1.57%. That’s a quarterly dividend amount of 37 cents per share ($1.48 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 $381,319 or around 4,054 shares. For a more modest $100 per month or $1,200 per year, you would need $76,283 or around 811 shares.

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To Calculate: Divide the 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).

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: We compute the dividend yield 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 0.7% to close at $94.06 on Wednesday.

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