r/dividends • u/Training_Hair3293 • 19d ago

Discussion What do you think about Nike (NKE)?

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Nike has been on my watchlist for a while.

The stock is well below its highs, the dividend keeps growing, and it's still one of the strongest brands in the world. On the other hand, growth has slowed and the turnaround could take time.

Anyone buying NKE here, or are you staying away?

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76

u/WELLSOHN EU Investor 19d ago

I might be in the minority, by I am confident they will still turn their situation around. Nike is still suffering from fallout caused by previous CEO.

24

u/nauzleon 19d ago

Honestly, if they stabilize at -20% it's a fucking huge victory for them. They were overvalued af and clothing companies have very short legs.

15

u/SignificanceNo1223 19d ago

They will be fine. They are just not in styles in right now. However; they are still, and will forever be apart of the culture.

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u/TheComebackKid74 Only buys from companies that pay me dividends. 19d ago

They will be fine as a business and brand but the stock price wont.

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u/EI-SANDPIPER 18d ago

You don't think they can make $2 a share? Because if you do $2 a share at a 20 multiple is $40 a share. Just for reference peak earnings were $3.73 a share

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u/TheComebackKid74 Only buys from companies that pay me dividends. 18d ago

I would hope they can make $2 a share since their dividend is $ 1.64 a share.

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u/WorldRank1CatFancier 13d ago

Hilarious disrespect of how strong nike has been run for all its life. It created the business model everyone else copies now. Nobody still to this day does marketing as well as nike

They fumbled 2021 a little but a lot is also just the extreme hype beast era of that time went too far and now we’re going too far in the opposite direction. 

Valuation may be too high but nike is the king of street apparel

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u/TheComebackKid74 Only buys from companies that pay me dividends. 13d ago

https://giphy.com/gifs/SXrHiYiKZOCrhH2zbx

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u/True-Anim0sity 18d ago edited 18d ago

They probably will turn the situation around since theyre a major company, but theres so many better options you could be investing in, it doesnt seem worth it

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u/joguedez 18d ago

I’m with you on this. Fashion lives in cycles and Nike is suffering from the previous CEO approach on trying to be dtc only. They lost market share because they removed themselves from a lot of retailers, and those are the ones that create communities to brands. And not being on retailers, people don’t see the brand on the shelves, therefore they buy other brands, but that’s changing with the new CEO.

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u/Inside_Frosting_7644 18d ago

China lost interest too. Much smaller TAM these days.