Sneaker giant Nike (NKE) hasn't historically been known for dividends, which isn't surprising, as the company describes itself as a “growth company.” However, after a 77% drawdown in NKE from its November 2021 highs, the stock’s dividend yield has risen to 4%, near its all-time high.
Nike has raised its dividends for 24 years, and if it raises the dividend later this year, it would join the elite club of Dividend Aristocrats, which are companies that have raised dividends for 25 consecutive years. Meanwhile, Nike is facing some serious headwinds, which are reflected in its price action, with the stock closing in the red for four consecutive years. NKE stock is trading near its lowest level in 12 years, and even the fat dividend yield provides little succor given the massive capital erosion.
