Nike (NKE) has ever been astir winning. The swoosh means something. But close now, the diversion elephantine is successful the mediate of a hard reset, and investors wondering whether to bargain shares for dividend income look a analyzable question.
Here's the math: Nike banal trades astir $65.41 with an yearly dividend of $1.64 per share. To cod $1,000 successful yearly dividends, you'd request astir 610 shares. That works retired to an investment of approximately $39,900.
It's not chump change, and the bigger question is whether Nike tin support that payout portion it fights to get backmost connected track.
Nike has paid dividends for years and accrued them regularly. In fact, if it increases its dividend again this year, it volition articulation the Dividend Aristocrats, a prime radical ofS&P 500companies that person accrued dividends for 25 consecutive years.
Data from Fiscal.ai suggests that the footwear behemoth has raised its yearly dividend from $0.16 per stock successful 2006 to $1.64 per stock successful 2026, indicating an yearly maturation complaint of implicit 12%.
Even during the existent struggles, absorption hasn't hinted astatine cutting the dividend. CFO Matt Friend emphasized connected the caller net telephone that the institution remains committed to returning currency to shareholders.
Nike generated over$2.4 billion successful escaped currency travel implicit the past year, contempt the downturn, which covers the astir $1.7 cardinal yearly dividend work with country to spare.
According to information from Tikr.com, betwixt fiscal 2025 and 2030, analysts covering Nike banal forecast it to increase:
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Revenue from $46.3 cardinal to $58 billion.
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Adjusted EPS from $2.16 to $4.22.
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FCF from $3.27 cardinal to $3.91 billion.
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Annual dividend from $1.57 per stock to $2 per share.
The dividend output of 2.4% is appealing compared to 2021's little than 1% and the humanities mean of astir 1%. That higher output reflects the stock's 63% diminution from all-time highs.
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Down 44% from all-time highs, tin this blue-chip dividend banal retrieve successful 2026?
For income investors, that creates an opportunity, assuming Nike tin stabilize the concern and support the payout. The hazard is that continued weakness forces absorption to rethink superior allocation priorities.
CEO Elliott Hill keeps saying Nike is successful the "middle innings" of its comeback.
The institution is trying to hole respective problems astatine once:
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Too overmuch reliance connected classic sneakers that mislaid their chill factor.
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A bloated direct-to-consumer strategy that alienated wholesale partners.
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Fierce competition from younger brands.

2 weeks ago
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