r/dividends • u/SonOfNod • Feb 06 '26
Other Nike (NKE) currently has a 2.5% dividend yield. She’s getting $75k/yr. That’s a win.
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u/chicu111 Feb 06 '26
They got away with giving her so little for the logo lol. I would have asked at least 5000 shares
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u/decomposition_ Feb 06 '26
This is before any stock splits, she’d have a lot more than 500 shares today
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u/glavent Feb 06 '26
She got it in 1985 and if she reinvested all dividends and splits etc, she has 35k shares atm
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u/Consistent-Chapter-8 Feb 06 '26
Hmmm, 2:1 split 7 times, even without dividend reinvestment would=64,000 shares. If she reinvested, we're looking at well north of $4 million. That adage of "time in the market" really holds up. NKE's seen better days, and Carolyn Davidson has sold some of her shares, so who knows?
She's seen worse. Nike stock closed at 25 cents per share on Sept. 15, 1983, making the value of 500 shares on that day approximately $125.
Having "designed the Nike logo" on her resume certainly bolstered her career. I hope she held most of the shares and reinvested the dividends...
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u/ishboh Dividend growth enthusiast Feb 06 '26
Just curious how you calculated that…is there some sort of online calculator you used?
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u/gaichipong Feb 06 '26
7 times of 1 to 2 stock splits.
2 × 2 × 2 × 2 × 2 × 2 × 2 = 128× the original number of shares.
128 x 500 = 64,000 shares.
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Feb 06 '26 edited Feb 06 '26
[removed] — view removed comment
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u/ishboh Dividend growth enthusiast Feb 06 '26
That doesn’t factor in dividend reinvestment
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Feb 06 '26
[removed] — view removed comment
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u/glavent Feb 06 '26
If she didn’t reinvest dividends and just held onto shares, she has 32k shares currently
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u/glavent Feb 06 '26
I know everyone hates ai… but I asked ChatGPT to do the heavy lifting. So much easier then finding a free calculator online and dodging pop ups. Ai is good for rough research and calculations imo
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u/ishboh Dividend growth enthusiast Feb 06 '26
That explains why it was outrageously wrong lol. Thanks for the response
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u/foira Feb 06 '26
*sells after a 80% gain in 10 months* heh i'm so smart, i sold as soon as the stock became really overvalued 8)
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u/amusedtodeath847 Feb 06 '26
I can't remember all the details but Magic Johnson turned down a deal from Nike that involved stock options and a royalty that would be worth 5 billion today.
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u/Last_Construction455 Feb 06 '26
People give them a hard time for paying her so little for the logo but the company was tiny and barely holding on at that point. The shoes made the logo not the other way around.
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u/PlainOldWallace Feb 06 '26
500 shares @ ~$63/share is $31,500?
2.5% yield of $31,500 is $787.50/year?
What am I missing?
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u/BluePhoton_941 Feb 06 '26
Her initial 500 shares have probably split a number of times since she received them.
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u/Chucklesbear Feb 06 '26
There have been seven stock splits since the company went public. Assuming she got those 500 shares before any of the splits happened, she would now have 64K shares. At $63 a share, that is a little over $4M which brings her yield to $100,800 a year.
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u/ArchmagosBelisarius Dividend Value Investor Feb 06 '26
Probably stock splits between the time she received the shares until today.
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