How To Earn $500 A Month From Nike Stock Following Quarterly Report

NIKE, Inc. NKE, on Thursday, posted better-than-expected earnings for its second quarter, but sales missed expectations.

Nike reported quarterly earnings of $1.03 per share, surpassing analyst expectations of 85 cents per share. Revenue of $13.39 billion missed the Street's estimate of $13.43 billion, according to Benzinga Pro.

With the recent buzz around Nike following quarterly results, some investors may be eyeing potential gains from the company’s dividends. As of now, Nike offers an annual dividend yield of 1.37%, which is 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 $437,994 or around 4,054 shares. For a more modest $100 per month or $1,200 per year, you would need $87,620 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: 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 11.8% to close at $108.04 on Friday.

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