Buy Nike shares - how to invest in Nike shares in South Africa

Today's digital technology is constantly changing the world, breaking down barriers and making possible things that seemed unimaginable yesterday.

So, not long ago, investing was considered the business of a small circle of people. These were either big business owners with huge capital or banking institutions. Without significant capital, you could only enter the stock market as an investment officer, nothing more. Investing involved a lot of paperwork, looking for a brokerage firm and running to banks to make payments. Today, the picture is totally different. Investing became available to everyone who had access to the Internet, a computer for work and a really ridiculous amount of money for the initial deposit into an investment program (platform) making only USD 10.

Investment as an option for increasing capital interests people all over the world. South Africa is no exception.

Is it possible to invest in Nike stock in South Africa?

Nike, the American maker of athletic footwear, apparel and equipment, has been a market leader for many decades. Around 95% of basketball shoes in the US are owned by Nike. The company employs around 70,000 people and is valued at $212.21B (billion).

Founded on 25 January 1964 as Blue Ribbon Sports, the company officially became Nike, Inc. in 1978. Nike sells its products under its own brand as well as under the Nike Golf, Nike Pro, Nike +, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, Nike CR7, Hurley International, and Converse brands. Nike was also owned by Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. Nike is the sponsor of many athletes and sports teams around the world.

Nike's official website
Nike's official website

Now you can not only buy products of your favorite company but also invest in its stock. Let's look at how you can do this if you live in South Africa.

How to invest in Nike shares in South Africa?

Nike shares trade on the New York Stock Exchange (NYSE) under the ticker symbol NKE. Nike shares were listed on the New York Stock Exchange in 1990. Prior to that, since the early 1980s, the securities could be bought or sold on the over-the-counter market.

To buy Nike shares online, you will have to find an intermediary - a brokerage firm that handles the company's shares and provides online services. Luckily, there are now quite a few such firms and you will be able to choose the one that is right for you. How do I choose a reliable broker? First, find a list of the online brokers available in South Africa. Find out if you can buy Nike stock from them. Monitor user reviews of brokers, choose the best ones. Find out what experience these brokers have in the stock market, what their business reputation is. Be sure to check whether they have all the necessary documents to conduct this type of activity. Examine the platform that this broker provides for making transactions - is it convenient for you to use, options for depositing and withdrawing funds, minimum amounts and limits on transactions, what commission will be charged from you for using and making transactions, and so on. All this information can be easily found on the Internet, without spending a lot of time and effort. However, this information is crucial and even necessary when you are starting out.

Nike is represented on the platform under the ticker NKE
Nike is represented on the platform under the ticker NKE

A popular way to invest in Nike stock is trading derivatives, so-called CFDs.

By choosing this method, you are not actually buying a stock, but investing in a derivative. A derivative is a derivative financial instrument (another collateral order), which is a contract for the underlying asset (first purchase security or commodity).

What is a derivative in simple terms? It is a contract between two bidders in a market based on the potential price of the underlying asset. Derivatives are used by dealers to speculate (make large profits) and also to hedge risks. When derivatives are used correctly, an investor reduces risk and increases the profitability of financial transactions on the stock market. In other words, you trade the gap in the value of a stock related to the opening and closing times of trades. That is, you must be able to predict the potential rise in the price of a stock or, conversely, its decline. You will only make a profit if your predictions are correct. Generally, when using this trading system you can use the multiplier function, which includes the use of leverage. By using a multiplier you can multiply your investment by several times, but you should not forget about the risks.

If CFD trading is not your method, you can choose the dividend investment option. This method invites you to spend a longer period of time and receive dividends. Although you won't get much profit in the short term, it is considered less risky.

Dividend payments on Nike shares are made on a quarterly basis (4 times a year) at a yield of around one per cent. Nike's dividend yield over the past 10 years has been shown to be between 1 and 1.7% of the share price.

Option to buy shares on the platform
Option to buy shares on the platform

How to buy Nike shares in South Africa?

So, in order to buy shares, you need to register on the online trading platform offered by the broker of your choice.

An online trading platform is the software with which you will be able to make all your investment transactions online.

An online investment platform is super convenient. Here you can see many different tools to be able to analyse a particular company in terms of investment attractiveness. You can also see a vivid illustration of share price fluctuations in the form of charts, you can do this on a company-by-company basis by selecting any reporting period for analysis, and you can also compare any firms. The platform provides you with the most accurate and up-to-date stock price information - it is updated in sync with the international stock markets, so you won't miss any important information.

In addition, the platform has a bookmark with the latest market news from trusted global information sources - you are advised to stay up-to-date with the news.

So, to start working with Nike shares, the first step after you have chosen an online broker is to register on the online investment platform. Registration is a simple and elementary process, taking no more than five minutes and requiring no more details than your first and last name and email at the start. Use a valid email address, because after registering you will need to confirm it with a standard procedure and you will also be emailed reminders of any pending transactions on the platform, news you may have subscribed to on the platform, messages about market closures or openings and the like.

Platform registration form
Platform registration form

You will then be asked to open either a demo or live account. We strongly recommend you to start with a demo account!  A Demo account is a unique opportunity to practice investing, without spending a penny. Opening an account is completely free, and there is no time limit in terms of training - some people only need a few days to learn, while others need months to understand how the system works. Do try trading with this account, but remember that you will not earn any real income until you open a real account.

Select an account to work with
Select an account to work with

A real account works exactly the same way as a fictitious one, but to start working with this account you will have to make a deposit of at least $10. You can make deposits using the payment systems listed on the platform. Funds are usually deposited instantly, but it can take up to five business banking days for the funds to be credited.

To buy Nike stock, select the "Stocks" section on the dashboard and enter the ticker NKE in the search box. You will be taken to the Nike stock platform section. Here you will see a chart of Nike stock price fluctuations as well as up-to-date information about the stock price, trading schedule and you will be able to buy shares.

Top up your account online
Top up your account online

Is Nike stock worth investing in?

Investing is a whole science which requires the potential investor to understand certain patterns and processes, as well as constant learning and deepening of knowledge. If you persistently study such processes, follow market trends, and monitor the behaviour of certain companies, over time you will learn to analyse and predict the possible growth or decline in the value of a company's assets. This will allow you to make successful transactions in the investment market and grow professionally as an investor.

Nike is one of the most interesting companies in the world to invest in.

The main market is the US, accounting for around 40% of sales, the company owns a network of 384 shops in the US and 768 shops in other countries (as of May 2019), with more than two-thirds of products sold to wholesalers. In fiscal 2018-19, Nike-branded merchandise sales generated $37 billion, including $24.2 billion in footwear, $11.6 billion in apparel and $1.4 billion in other sporting goods, with the Converse brand accounting for about $2 billion in revenue.

Investment information about Nike on the platform
Investment information about Nike on the platform

Going forward, the issuer plans to grow revenues by selling its products in the European, Japanese and North American markets. This is likely to result in an increase in the Issuer's profits and revenues. An increase in these financial indicators could cause the company's securities to move higher.

As of the date of this review Nike share price is $133.46 (+56.52% YoY), the market experts' forecasts are positive.

Investing in Nike stock in South Africa is a great decision that you can easily make today.

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