Investing in a well-known brand can be a great way to generate returns over a long period of time. Nike is one such brand that has been around for decades, and has established itself as a leader in the sportswear industry. If you had invested $1,000 in Nike 10 years ago, how much would it be worth today? In this article, we will take a look at the returns on a $1,000 investment in Nike over the past decade.
10-Year Investment in Nike: A Look at the Returns
Nike has been a consistent performer in the stock market, with a strong brand and a loyal customer base. Over the past 10 years, Nike’s stock has been on a steady upward trend, with a few blips along the way. As of August 2021, Nike’s stock price is around $166 per share, up from around $25 per share in August 2011. This represents a total return of over 560% over the past decade.
Nike has also paid out dividends over the past 10 years, although the yield has been relatively low compared to other companies. As of August 2021, Nike’s dividend yield is around 0.77%, which means that for every $1,000 invested in Nike, you would receive around $7.70 per year in dividends. While this may not seem like a significant amount, it does add up over time.
How $1,000 Investment in Nike 10 Years Ago Grew Over Time
Assuming you invested $1,000 in Nike 10 years ago, your investment would have grown to around $6,600 as of August 2021. This includes both the growth in share price and the dividends paid out over the past decade. While this is a significant return on investment, it is important to keep in mind that past performance is not a guarantee of future results.
Overall, investing in a strong brand like Nike can be a smart long-term strategy for generating returns. While there may be some volatility along the way, the steady growth in Nike’s stock price over the past decade is a testament to the strength of the company’s brand and business model.
In conclusion, a $1,000 investment in Nike 10 years ago would have grown to around $6,600 as of August 2021, representing a total return of over 560%. While past performance is not a guarantee of future results, Nike’s strong brand and consistent growth over the past decade make it a promising investment for those looking to generate long-term returns. As always, it is important to do your own research and consult with a financial advisor before making any investment decisions.
