Over the years, Nike (NYSE: NKE) has been quietly transforming into an income stock. It isn’t a Dividend King, as it hasn’t increased its payouts for 50 or more consecutive years, but it’s on the path to becoming one, having boosted its payout for 24 consecutive years.
For anyone looking to add a few more income stocks to their portfolios heading into 2027, let’s look at how many shares it would take to receive $1,000 in annual dividends.
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Nike as a dividend stock
Nike’s dividend yield is 4.2%, which is very favorable. According to research from The Motley Fool, the average interest rate on checking accounts was 0.07% as of October. That yield is even competitive with some of the highest-yielding savings accounts.
To get into the math, the shoemaker pays a forward dividend of $1.64 per share, or $0.41 per quarter. For an investor to receive $1,000 in yearly dividends from Nike, or $250 per quarter, they would need to own roughly 610 shares. At a closing price of $38.59 on Nov. 6, buying 610 shares would cost $23,539.
That said, there’s more to investing in Nike than just the dividend yield alone.
What else to consider
Nike reported in its fiscal 2027 first-quarter earnings that full-year sales were likely to decline by a high-single-digit percentage. It’s experiencing a sales slump in its China segment, and some of its brands are underperforming.
In step with weaker sales that have plagued the company for some time, Nike’s stock price is down 38% in 2026. If the stock price continues to decline, it could cut into dividend payouts, limiting total return when an investor decides to sell.
Nike’s consistency in boosting its dividend payouts for 24 consecutive years is promising. And if sales can stabilize and eventually show some growth, it could offer the stock price some fuel to climb higher. But with a declining stock price, Nike offers too much uncertainty to serve primarily as an income stock. I would be fine watching it from the sidelines.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
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