1 Dividend Stock Owned by Billionaire Bill Ackman That Could Double by 2030

Core Viewpoint - Bill Ackman's investment in Nike signals confidence in the company's potential for growth, despite recent challenges, with expectations that the stock could double by 2030 [2][6]. Group 1: Investment Details - Pershing Square Capital Management acquired over 16.2 million shares of Nike, representing an 11.2% weight in the portfolio, making it the sixth-largest holding as of September 30 [3]. - Nike has a long history of profitability, with an average net profit margin of 10.1% over the past decade, contributing to consistent free cash flow [5]. Group 2: Dividend and Shareholder Returns - Nike currently pays a quarterly dividend of $0.40, yielding 2.16%, and has increased its payout annually for 23 consecutive years, with a total increase of 186% over the last decade [5]. Group 3: Challenges and Strategic Focus - Nike has faced challenges, including alienation of physical retailers and a lackluster product refresh, but improvements in financials are anticipated in the coming years [7]. - The new CEO, Elliott Hill, aims to refocus the product strategy on sports, moving away from lifestyle lines to regain consumer excitement [8]. Group 4: Market Position and Valuation - Regaining trust with wholesale partners and maintaining strong marketing efforts are critical for Nike's future success [9]. - Nike shares currently trade at a price-to-earnings ratio of 22.8, below the 10-year average of 37.5, suggesting potential for valuation improvement alongside rising earnings [11].