If You'd Invested $10,000 in Nike a Decade Ago, Here's How Much You'd Have Today (And It's Not Pretty)
Even with every dividend reinvested, a decade in this iconic brand badly trailed a plain index fund.
Overview
As recently as a few years ago, few stocks would have felt safer to buy and hold a decade ago than Nike (NYSE: NKE). It owned its category, carried one of the most recognized brands on earth, and rewarded shareholders with a steadily rising dividend. So here is a figure that should give any long-term investor pause: $10,000 invested in the sportswear giant 10 years ago, with every dividend reinvested, would be worth only about $9,000 as of this writing. You would have less than you started with.
Put that same $10,000 into a simple S&P 500 index fund over the same stretch, and you would be sitting on about $41,700 today -- more than four times your money.
Details
Nike stock has quietly turned into one of the market's more disappointing blue chips. And how that happened says a lot about whether today's beaten-down price near $44 is the opportunity it appears to be.
Source
Originally published at www.fool.com.