For decades, Nike (NYSE: NKE) has operated as a leader in the global market for sports footwear and apparel. But that winning position has come under fire in recent years. The brand known for inspiring, empowering, and motivating its customers has failed at doing just that for its investors.
As of Aug. 14, shares trade 77% below their peak from November 2021. It's hard to get excited about the company's prospects when it's in the middle of a multi-year turnaround in an intensely competitive industry. However, the consumer discretionary stock might pique the interest of investors seeking a nice income stream they can depend on.
This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.
Continue » Nike currently boasts a dividend yield of 4%. And the business is on track to make 2026 the 25th straight year that the quarterly payout will be raised. Last November, Nike raised its dividend payout for the 24th consecutive year.
It bumped the quarterly distribution to $0.41 per share, which equates to $1.64 on an annualized basis. Since the share price has cratered, the yield has gotten a boost. Compared with the S&P 500 index's 1.03% dividend yield, the sportswear giant offers investors nearly four times the cash return.
It's likely that another hike will be announced later this year. Historically, Nike has implemented a dividend payout increase in November. If the trend continues, the business will officially be recognized as a Dividend Aristocrat®, a group of S&P 500 companies that have a 25-year (or longer) dividend-raise streak alive.
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