Nike Could Be the Next Dividend Aristocrat, But Is NKE Stock a Buy?

Core Viewpoint - Nike's stock has significantly underperformed since late 2021, closing in the red for three consecutive years, but it maintains a healthy dividend yield of over 2.2% and is on track to become a Dividend Aristocrat [1][2]. Dividend Sustainability - Nike has increased its dividends for 23 consecutive years, with a dividend growth rate of 10.3% over the last five years and a 10-year CAGR of just over 11% [3][4]. - Despite facing headwinds and a decline in earnings, Nike has continued to increase shareholder payouts, resulting in a payout ratio exceeding 70% [5]. - Analysts predict a net income decline of over 22% for the current fiscal year, but a 54% increase is expected in the following fiscal year [6]. Historical Context - Nike has a history of increasing dividends even during challenging economic periods, such as the 2008 Global Financial Crisis and the Covid-19 pandemic in 2020 [7].