NIKE INC -CL B (NYSE:NKE) - A Dividend Stock Worth Considering

NIKE INC -CL B (NYSE:NKE) was identified as a strong dividend candidate by our stock screener. The company combines a solid dividend profile with healthy profitability and financial stability, making it an interesting option for income-focused investors.

Dividend Strengths

• Reliable Track Record: NKE has paid dividends for at least 10 years without reductions, demonstrating consistency.
• Growing Payouts: The dividend has grown at an annual rate of 11.20%, well above many peers.
• Sustainable Payout Ratio: At 50.33%, the payout ratio is manageable, supported by earnings growth.
• Competitive Yield: The current yield of 2.63% is slightly above the S&P 500 average.

Profitability and Financial Health

• Strong Margins: NKE maintains a Return on Equity of 32.18% and a Profit Margin of 9.43%, outperforming most industry peers.
• Low Debt Risk: The company has minimal debt, with a Debt-to-FCF ratio of just 1.69, indicating strong cash flow coverage.
• Healthy Liquidity: A Current Ratio of 2.19 ensures short-term obligations are easily met.

Valuation Considerations

While NKE trades at a premium (P/E of 33.35), its profitability and growth prospects justify part of this valuation. Analysts expect earnings to grow by 19.35% annually, which could support further dividend increases.

For a deeper analysis, review the full fundamental report on NKE.

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Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.