Buy Adidas shares - how to invest in Adidas shares in Nigeria

The question of why invest in stocks often comes up for people who are just starting to become interested in passive income. One could say that this skill is one of the mandatory skills of a person who wants to succeed, just as one used to need to be able to speak French or ride a horse.

Every person in the modern world just needs to learn how to manage their money and how to multiply it. Almost everyone periodically thinks about saving and achieving financial freedom, ensuring a peaceful old age and investing in their children's future. Investments play a huge role in the lives of people in developed countries. Up to 80% of Americans invest in shares of large companies and receive dividends.

Adidas shares

When thinking about why investing in Adidas stock in modern life, many come to the conclusion that this area is only suitable for the chosen few and those who initially have a lot of capital. But in fact, it is possible to get into the investment market with small funds as well. Invested funds work 24/7 for their owner and then for their descendants. Investments are the basis for future capital and wealth growth. 

The founding date of Adidas is 1920. Adolf Dassler is the man who set up a small family-run shoe-making company. As early as 1928, the company boasted a range of footwear designs for football players. The Adidas footwear range had come a long way since its foundation in Herzogenaurach by Adolf Dassler and became one of the shoe and sportswear manufacturing leaders worldwide.

In 1950, the company made its first steps outside the borders of its own country. Other product variants were launched in 1952. After that, Adidas began a period where the management was trying to expand production and sales (it subsequently managed to become the biggest European sportswear brand). That is why in 2005 management took a very important step in the life of the holding company: it acquired 100% of the securities of Reebok (at the time it was one of the strongest competitors in the field of tailoring sportswear/shoes).

In 2016, Adidas includes the following items: 8 companies (production outlets operating in Germany); 25 subsidiaries operating in many countries (USA, South Africa, England and so on).

Adidas is currently a public company. Its securities are listed on the Frankfurt Stock Exchange. The company has a profitability of more than 14%.

Stock trading conditions
Stock trading conditions

Adidas securities have been traded on the German exchange XETRA since 1998. Adidas shares are also traded on the Frankfurt Stock Exchange and several other European exchanges under the ADS ticker symbol. During this time, the Adidas share price rose from €38 to €294. 

The first significant peak was reached in December 2007 when the share price rose to 51.3 euros per share. Adidas was able to renew this value and set a new historical record in 2014. 

You can find out how much Adidas shares are worth on stock exchanges. In March 2020, a historic high of €294.8 per share was set. This was followed by a precipitous drop in prices due to the pandemic. Almost all of the losses were recovered by the end of January 2021.

What are the special features of Adidas shares for investors?

1. Rising financial performance. In 2015, the holding company made a very serious leap, following which revenues grew by 12%. This has enabled Adidas to reach its position as one of the market leaders in sportswear/shoes (on the European continent). Revenue reached 16.9 billion euros. Net profit was €640 million. Management had set global targets for 2015, but even these were exceeded. This allowed to raise the profit percentage for investors.

2. New contracts. In 2016 Adidas is going to sign several very important cooperation and sponsorship agreements with the stars of world sport. In addition, there will be an emphasis on working with several football clubs at once. In this way the attractiveness of the company's products will be increased several times over.

3. Expansion of assortment. The announcement of new models of footwear and clothing is planned. Emphasis will be placed on quality. The goal: to create a material which gives the products maximum lightness. It is important to improve all the characteristics of sportswear which will help us outperform all our competitors.

4. The response to criticism will be satisfied. All world stars who have contracts with Adidas and use doping will lose their contract with the company. In order not to make the securities of the holding company cheap in the future, the management plans to terminate all contracts and pay penalties today.

In spite of the very high financial performance, the management of Adidas is going to raise it. Every investor and trader can make very good money on Adidas shares in Nigeria as Adidas has very high prospects.

Hopefully, it is now clearer to you why you should start investing in Adidas stock in Nigeria. Returns on investments exceeding salaries are not a fairy tale but a real statistic. And don't think that only the rich and powerful become investors. It is possible for everyone now!

How to invest in Adidas shares in Nigeria?

Adidas is a large European company with a long history. It started trading at the beginning of the last century and is now well known as one of the biggest manufacturers of sportswear and shoes. Shares in Adidas are an attractive investment vehicle. Adidas shares are freely traded on the major stock exchanges. Both large investment funds and novice traders can invest in Adidas shares.

Novice traders can now make money on Adidas shares, both by changing their value and by receiving dividends. To do so, they need to open a trading account with a brokerage company. Brokerages give you access to the XETRA and other European stock exchanges, which allows you to trade directly in Adidas shares. Their list of trading instruments includes contracts for difference (CFDs) for these securities.

Invest in Adidas shares
Invest in Adidas shares

Before deciding whether to buy Adidas shares, an assessment should be made of the fundamental factors that influence the price. This takes into account global factors as well as industry-specific and internal factors.

Adidas share prices are sensitive to the following factors:

  • The exchange rate of the dollar. The lower it is, the more favourable the export advantage of US competitors, in particular Nike. And a rising dollar exchange rate can indirectly increase Adidas' competitive advantage in international markets.
  • General demand for securities from large investors. Risk appetite in the coming years will be supported by signs of economic recovery from the coronavirus pandemic, low central bank interest rates and widespread monetary and fiscal stimulus programmes.
  • Adidas' share price will show a rise in securities in response to the corporation's strong quarterly reports.
  • Demand for the shoes and clothing produced by the company is dependent on the expansion of the fitness and sports industry. It suffered during the pandemic but will rebound as blockades are lifted and gyms open.

Investors can earn not only by changing the value of the securities, but also by receiving dividends on Adidas shares. Payments are made on an annual basis and each security received €3.35 in 2018 and €3.85 in 2019. The amounts earned per security depend on what the dividend yield on Adidas shares was for the previous year. The accrual usually takes place in May for the previous year. Investors need to have open buy trades before the ex-dividend date, which the company indicates in the payout announcement, in order to receive the payout.

Adidas shares are a profitable asset for private investors. It is worth including them in your trading portfolio by carrying out preliminary analysis and selecting the best price for the trade.

Information about Adidas shares
Information about Adidas shares

Invest in Adidas shares in Nigeria for long-term strategies, which involve opening a transaction for several months, requires no daily commissions. For short-term investing, CFD contracts are suitable. They have the advantage of ease of use, free trading platforms for making transactions, and a multitude of short and medium term strategies that can be applied to profit through active trading.

CFD contracts are a type of bet between two parties on the future value of a stock, in which both parties agree to settle an amount equal to the difference between the opening and closing price of the position. Hence the term 'contract for difference'. In simple terms, if you buy such a contract and the price of the underlying instrument goes up, you will receive the corresponding difference from the broker who sold it to you. On the other hand, if the price falls, the difference will be taken from your account.

It is important to consider the advantages and disadvantages of trading CFDs.

Advantages of CFD contracts:

  • The first one is the low capital requirements - this is the main advantage of this instrument. You can start trading with 0.1 lot. This means that having as little as $100 on your account you can conduct transactions with financial instruments that would otherwise require several thousand dollars.
  • Leverage. You can make relatively high investments with little capital. Leverage is the ratio of your own funds to the value of what you wish to buy or sell. The amount of leverage shows how much a broker is willing to lend. With 1:5 leverage an investor can make a transaction for five times the amount of their own money in their account, while with 1:10 leverage an investor can make a transaction for ten times the amount of their own money in their account.

Convenience, many traders prefer to work with a familiar trading platform. As a result of working with unfamiliar interface, users often make technical mistakes that have a negative impact on the trading results. Moreover, the large selection of markets that are eligible for CFDs means that a large number of futures, indices and stocks can be traded.

Disadvantages of CFDs:

  • The biggest disadvantage that CFDs have is high spreads. In order to avoid disadvantageous conditions, you must find a company that offers market spreads with the best possible conditions. It is important to remember that spreads depend primarily on the liquidity of the instrument, so before you open a deal, you should examine your instrument to see how it behaves over time. 

Anyone can trade CFDs. You can start your career with a very modest deposit, then build it up and move on to full trading. As well as gauging your risks, you should always learn more about the field of finance and your chosen direction of investment. How to invest in Adidas shares can also be answered with basic advice from experienced investors.

Choose stocks for investment
Choose stocks for investment

Invest in Adidas shares is attractive because the company has taken over the entire fashion market. The company dresses athletes and far-out sports stylists, supplies hardcore campers and professional footballers. As well as clothes, the brand also produces golf and hockey accessories. The famous three stripes on the silk sleeve - fashion hasn't changed for the past 50 years.

How to buy in Adidas shares in Nigeria? 

For new traders, trading in the stock market seems like a complicated science which only experienced investors can master. All that is needed is to have a minimum deposit and spend some time on self-education. Investments play a huge role in today's world, which is hard to overestimate. 

Online trading platforms make buying stocks easier, use technology and offer new forms of investing. In today's world, it is possible to invest in Adidas shares in Nigeria from the comfort of your home. Try it and you are sure to succeed!

Registrating on the investing platform
Registrating on the investing platform

To start trading Adidas shares in Nigeria, you must first choose a proven platform. After that, a simple registration with a broker who provides access to the European stock exchanges is required. Depending on the purpose and the parameters involved, trading accounts can be either real or demo (demo account). 

If you are considering investing in Adidas shares in Nigeria we recommend that you first open a demo account, in which you trade with virtual money. The possibility to create such accounts is available on almost all platforms, which are interested in creating the most favourable conditions for newcomers. 

How to open account
How to open account

A demo account gives you the chance to gain invaluable trading experience, learn the ins and outs of the trading platform, and learn to manage your emotions by experiencing unexpected market surges and unpredictable events so that the novice trader reacts less acutely next time.

Once you have a minimum experience on how to buy Adidas shares, you can open a real trading account. The deposit to open a trading account is small. This can be done by transferring money via bank card, bank transfer or via e-wallet. Depending on the chosen method of funding, the money will come from 5 minutes to 5 days.

Once you have opened a trading account, you can start buying Adidas shares in Nigeria. You can deposit more funds into your trading account or use leverage to buy more Adidas shares. If you have any difficulties, you can always contact the support team, they are available round the clock. 

Adidas has a global reach - it designs, manufactures and sells over 900 million products worldwide, making it one of the most widely distributed manufacturers of sportswear. Take control of your financial future!  Start investing in Adidas shares in Nigeria now!

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