Contributor, Benzinga
Updated: August 5, 2022

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Very few sporting apparel companies reach the level of ubiquity that Nike (NKE) has achieved, or its press coverage, for that matter. Over summer of 2018, headlines flooded with Nike’s name, praising or chastising the company for naming polarizing football player Colin Kaepernick the face of its latest advertising campaign. Nike continually makes news with campaigns for big athletes from Kobe Bryant to Michael Jordan, Tiger Woods and many more.

No matter what you think about Kaep’s politics, it’s undeniable that his influence translated into a spike in the company’s earnings; shortly after releasing Kaepernick’s ad, Nike stock sharply rose over 6.25 percent, translating into $6.38 billion added to the sports giant’s value. The company also reported that the controversial ad campaign was also its most engaging. Across social media platforms and across the nation, the name “Nike” trended all over the web.

In addition to older, more controversial campaigns, Nike is celebrating its 50th anniversary in 2022 with a beautiful commercial from Spike Lee. Plus, the company sponsors a massive range of athletes that come to light here and there as track and field, tennis, golf and other sporting events take hold of the public consciousness throughout the year.

The internet is far from the only place where consumers see Nike’s signature swoop. The company sponsors athletes, teams, and events around the world. No matter where you are, be it a stadium, park, or court, chances are high that at least one of the players is wearing Nike.

Nike is the market leader when it comes to sports apparel and keeps close tabs on competitors Adidas and Under Armour to maintain its position. Becoming a Nike shareholder is a great way to earn a cut of the profits.

Why Invest in Nike?

Nike products are about more than just buying a pair of sneakers or cleats. Athletes who wear Nike see themselves as an extension of the brand. Three principles guide the sports leader’s success:

Celebrity endorsement

Nike shells out millions of dollars every year to ensure that the most talked-about and in-demand of athletes are wearing their signature swoop.

From basketball legend Michael Jordan to tennis superstar Maria Sharapova, one thing’s for certain—if an athlete’s at the top of his or her field, chances are high that he or she is getting paid big bucks to sport Nike during the game. 

Every time tennis players in Nike gear get on the court, it’s obvious. Tiger Woods even looks at a golf course, and we all remember he uses Nike gear. You’re investing in a business that must keep up with extremely profitable sports.

Sports will never stop

Sports leagues around the world (and especially in America) will never stop. These are some of the most profitable enterprises in the world, and Nike is fueling many of their athletes. Plus, Nike has apparel deals with many of those teams and the best players. For example, a whole NFL team that wears Nike gear is making Nike a lot of money every year—both by paying for the gear and the free advertising.

The power of social media

Nike’s recent campaign featuring Colin Kaepernick is far from the first time the company has demonstrated its total control over the social media landscape.

In 2017, Nike launched its ambitious Breaking2 project, which challenged world-class marathon runners to complete a 26-mile run in under 2 hours—a feat never before accomplished. The post exploded on social media, spreading like a virus across multiple platforms and reaching consumers around the world. The brand focuses on quality content over quantity, which has led to Nike’s position as one of the top corporations on social media.

Diversification

Nike is a jack-of-all-trades, offering products for athletes of all disciplines, shapes, and sizes. From cheerleading shoes to track and field spikes and from yoga pants to tennis dresses, Nike offers something for everyone. Nike’s brand diversification has made it a household name and has contributed to its long-lasting success.

Ready to place your money into Nike’s stock? Use the following steps to get started on the path to owning a piece of the world’s largest sports apparel company.

How to Buy Nike (NKE) Stock

  1. Consider purchasing directly through Nike’s shareholder program

    Nike offers a direct stock purchase plan that allows investors to purchase Nike shares without the use of a broker or firm.

    To take this route, you’ll need to create an account through ComputerShare and commit to a minimum investment of at least $500. Keep in mind that you’ll also need to pay a $10 initial startup fee to begin with ComputerShare. If you choose this route, skip to Step Four in this guide.

  2. Choose a stockbroker

    If you choose not to invest in Nike directly through ComputerShare, you’ll need to work with a broker to facilitate your transactions. Luckily, the ubiquity of the internet means that you can now open an account with your own brokerage online.

    Brokerage firms like TD Ameritrade, Ally Invest, and E-Trade all come along with their own set of fees, commissions, and minimum balances, so carefully consider multiple options before choosing one. Check out Benzinga’s list of the best online brokerage firms for a crash course in finding the broker that’s right for you.

  3. Use your broker’s platform to place an order

    After you’ve chosen a brokerage firm and opened an account, you’ll want to put in an order (called a “buy”) for your shares of Nike stock.

    Use your broker’s platform to search for Nike using the ticker “NKE,” choose your order type, and put in your request. Your broker will then fulfill your order for you. After the trade is completed, you are an official shareholder of the Nike corporation.

  4. Enroll in Nike’s dividend reinvestment plan

    If you chose to purchase your stock directly through Nike, you may need to manually opt in to the company’s dividend reinvestment plan. Buying through a broker usually automatically does this for you, so you can skip this step.

    Reach out to Nike’s investor relations team for assistance getting started in the reinvestment plan.

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Final Thoughts

Many beginner stock brokers make the mistake of over-purchasing their first stock in an attempt to lessen the burden of broker’s fees and commissions. If you’re feeling tempted to “just do it,” take a step back and consider how much stock you can reasonably afford to buy.

If you’re completing your first trade, test the waters by investing only a small amount of money—even purchasing a single share will be a great learning experience and will give you the tools and knowledge you need to make a bigger investment next time. 

Want to learn more about investing in stocks? Check out Benzinga's guides to the best stock trading software, best stock research tools and best online brokerages.