Up to nearly 20% in a month, is this dividend shares still a purchase in July?

Dividends and Dollars from Markgrafave through Istock

Usually, corporate dividends and high dividends do not make a good combo, as one of the ways in which companies are trying to “turn” their business is by reducing costs, and sometimes it means reducing dividends while trying to reduce their cash flows.

In addition, the reason why the company should “turn” first is that it does not perform well financially, which means that the dividend can be at risk of being shortened or stopped completely.

However, I believe that Nike is a stock that fits into the category of dividend stock. The action has a dividend yield of over 2%, and although this has fallen from the maximum in 2025, against the background of nearly 20% NKE’s shares over the last month, it still looks like a purchase. Let’s discuss this in perspective, starting with the dividend of the company.

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While some companies have a well -documented dividend policy, Nike does not have a requested payment policy. However, he has increased his dividends for 23 consecutive years and seems to be about to become a dividend aristocrat. The company increased its dividends even during the 2008 global financial crisis and the Covid-19 pandemic in 2020. Although its profits have struck in the last quarters, the company has increased its quarterly dividend by 8% to $ 0.40 in December 2024.

Dividends have grown at a complex annual growth rate (CAGR) of 10.3% in the last five years, while Cagr for the last 10 years is just over 11%. This seems like a pretty decent growth and I have no reason to believe that the company will soon reduce its dividend. Nike’s current dividend yield is about 2.1%, which, although not in the mouth, is much larger than 1.3%that the average composition of the S&P 500 ($ SPX) index pays.

In the meantime, while Nike has a healthy dividend yield, payment should not be the only reason for the purchase of the action, as it is a greater part of its return does not come from dividends. Nike investors should expect the bigger part of their return on capital appreciation, so it is wise to look at the stock forecast.

While numerous brokers, including Goldman Sachs, Piper Sandler, Citigroup, HSBC, Barclays and Baird, raised the target price of Nike after the fiscal profit of the Q4 2025 last month, the shares traded at an almost average target price of $ 76.63. However, the target street price of $ 120 is 56.8% higher than the closing price on July 7.

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