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Monday, October 25, 2021

The NKE Stock Might Not be the Best Business to Buy In the Upcoming Dividend

If you are really invested in the NKE Stock, you need to make your move fast, as the stock might just be traded for an ex-dividend. Remember, you need to buy the stock before December 4th, or you will find yourself ineligible to receive the dividend. The dividend would be paid to you on December 29th. 

The per-share dividend payment of the NKE Stock is $0.38, which comes riding on the back of the per-share price of $0.98 which shareholders got last year. If one were to calculate the payments made last year, it would seem that NIKE did have a yield of 0.8% trailing against a share price of $134.25. Make a note that while dividends seem to be a big contributor for long term holders to beget their investment returns, it only works if the dividends are paid. Precisely the reason why you need to see if the NKE stock is growing and if there is sustainability in the dividend payments. 

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Sure, it is quite a fortune to witness the NKE stock dividend to be covered by both cash flow and profit- for this is usually a signal that the dividend is sustainable. Also, investors would be happy knowing that a payout ratio that is low usually guarantees a safety margin that is pretty reasonable. 

Have Earnings And Dividends Been Growing for NKE Stock?

It is said that stocks that have flatter earnings would be appealing to dividend payers, yet it is also important to be conservative. If the earnings were to go down way below the required level, the NKE stock will have to cut its dividend. 

As a final takeaway, it needs to be said that Nike has not been able to generate enough growth. Yet, the dividend does look sustainable. But regardless, the NKE Stock shouldn’t be seen as the dividend stock most suitable for a long-term investor. 

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