Nike Now Yields More Than Coca-Cola. Is the Turnaround Finally Priced In?
Nike's elevated yield reflects a depressed share price, even as demand for Nike Running is surging.
Overview
Nike's (NYSE: NKE) forward (12-month) dividend yield is 4% -- well above Coca-Cola's 2.4%. This is notable given Coke's status as a Dividend King, a label reserved for companies that have raised their dividends for 50-plus straight years.
Nike's elevated yield reflects a lower share price despite the company continuing to pay a steady quarterly dividend. Instead of being priced in, the market might be undervaluing the stock ahead of a successful turnaround.
Details
Nike's latest results still showed revenue declines, yet the underlying story is getting more constructive. If management executes, an improvement in margins and recovery in profitability could drive meaningful upside over the next several years.
Source
Originally published at www.fool.com.