20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
NIKE, Inc. (NYSE:NKE) on Thursday posted upbeat earnings for its first quarter, while sales missed expectations.
Nike said fiscal first-quarter revenue increased 2% year-over-year to $12.939 billion, which missed the consensus estimate of $12.98 billion. The company reported quarterly earnings of 94 cents per share, which beat analyst estimates of 74 cents per share.
With Nike reporting quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Nike has a dividend yield of 1.52%, which is a quarterly dividend amount of $0.34 a share ($1.36 a year).
To figure out how to earn $500 monthly from Nike dividends, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Nike’s $1.36 dividend: $6,000 / $1.36 = 4,412 shares
So, an investor would need to own approximately $395,448 worth of Nike, or 4,412 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 / 1.36 = 882 shares, or $79,054 to generate a monthly dividend income of $100.
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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 0.2% to close at $89.63 on Thursday.
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20-Year Pro Trader Reveals His "MoneyLine"
Ditch your indicators and use the "MoneyLine". A simple line tells you when to buy and sell without the guesswork. It’s a line on a chart that’s helped Nic Chahine win 83% of his options buys. Here's how he does it.
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