Nike, Inc. is set to announce its first-quarter earnings after the close of trading on Tuesday, September 30. Analysts anticipate the company to report earnings of 27 cents per share, a significant decline from 70 cents per share reported during the same period last year. Furthermore, Nike’s revenue is projected at $11 billion, a decrease from $11.59 billion the previous year.
Despite the anticipated lower earnings, Nike has consistently surpassed revenue expectations in the last three consecutive quarters, and six of the past ten quarters. This track record may give investors continued faith in the company’s financial performance.
Amid this period of financial reporting, some investors are also considering the potential returns from Nike’s dividends. Currently, Nike offers an annual dividend yield of 2.31%, equating to a quarterly dividend of 40 cents per share, or $1.60 annually.
To earn $500 monthly through Nike’s dividends, an investor would need to own approximately 3,750 shares, valued at roughly $260,813. For a more modest goal of $100 monthly, 750 shares amounting to about $52,163 would be necessary.
However, it’s crucial to remember that dividend yields can fluctuate as stock prices rise and fall, and dividend payments may vary over time. A stock paying $2 annually with a current price of $50 results in a 4% yield. If the price increases to $60, the yield decreases to 3.33%, and if it drops to $40, the yield climbs to 5%. Changes in the dividend payments also directly impact yields.
On Monday, Nike’s share price increased by 0.4%, closing at $69.55, indicating a positive movement in anticipation of the earnings report.
Investors should continue to monitor Nike’s financials and market movements, especially as the company strives to maintain a solid growth trajectory amidst evolving market dynamics.