Nike Is Down 79%. Is It Finally the Ultimate Dividend Stock to Buy and Never Sell?
Nike's stock has declined 79% from its peak, pushing its dividend yield to a record 4.5%, making it potentially attractive for income investors. However, the company faces significant challenges including failed growth strategies, declining revenue in Greater China due to competition from domestic brands, and unintended consequences from its direct-to-consumer sales focus that weakened retail partnerships. While Nike maintains solid financials and a 24-year dividend growth streak, the company faces execution risks and the possibility of dividend cuts if earnings continue to decline.