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

NIKE INC-CL B (NYSE:NKE) was identified by our Best Dividend Stocks screen, which looks for companies with strong dividend potential while maintaining solid profitability and financial health. NKE stands out with a reliable dividend history and a well-balanced financial profile.

Dividend Strength

• Consistent Growth: NKE has increased its dividend for at least 10 consecutive years, with an average annual growth rate of 11.20%.
• Sustainable Payout: The company’s payout ratio is 50.33%, which is manageable given its earnings stability.
• Yield Comparison: NKE offers a 2.14% dividend yield, slightly below the industry average but competitive with the S&P 500.

Profitability & Financial Health

• High Profitability: NKE scores an 8 out of 10 in profitability, with strong return metrics (ROE of 32.18%, ROA of 11.93%).
• Solid Financial Position: The company has a healthy balance sheet, with an Altman-Z score of 4.86 and manageable debt levels.
• Cash Flow Strength: Free cash flow comfortably covers dividend payments, reducing risk for income investors.

While NKE’s valuation appears elevated compared to peers, its strong fundamentals and dividend reliability make it a candidate for dividend-focused portfolios.

For more high-quality dividend stocks, check our Best Dividend Stocks screener.
Review the full fundamental report on NKE for deeper insights.

Disclaimer

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