10 Stocks That Are Close To Becoming Dividend Aristocrats

2. NIKE, Inc. (NYSE:NKE)

Consecutive Years of Dividend Growth: 23 Years

NIKE, Inc. (NYSE:NKE) is a multinational footwear and apparel company that offers products for men, women, and children. The company faced some difficulties in recent years but is working to overcome them with fresh strategies. It has appointed a new CEO, bringing back Elliott Hill, a longtime company veteran who retired in 2020 as president of global commercial and marketing operations. This change provides the company with an opportunity to reset its approach, under the guidance of a seasoned insider with a proven record of success.

Coho Partners also highlighted this transformation in its Q2 2024 investor letter. Here is what the firm has to say:

“While we believe each of those companies is performing in line with or better than our expectations and that the moves lower are unjustified, both CVS and NIKE, Inc. (NYSE:NKE) reported disappointing performance in recent results. For Nike, the company reported mixed fourth quarter Fiscal 2024 results and weak Fiscal 2025 guidance, reflecting top line pressure from lifestyle product slowing, lower digital sales and increased macro headwinds in international markets. To manage through the decline in sports footwear and apparel demand, the senior leadership team is focused on cutting costs and reinvesting in marketing and innovation to drive sales. The company is starting to see green shoots for performance product innovation and has historically emerged stronger from these downturns due to benefits from a leading market position and scale.”

NIKE, Inc. (NYSE:NKE) reported mixed earnings in fiscal Q1 2025. The company’s revenue of $11.6 billion fell by 10% from the same period last year. Its wholesale revenues also declined by 8% on a YoY basis at $6.4 billion. However, the company’s cash position remained stable, with nearly $8.5 billion available in cash and cash equivalents, up from $6.2 billion in the prior-year period. Its trailing twelve-month operating cash flow stands at $7.9 billion.

NIKE, Inc. (NYSE:NKE) declared an 8.1% hike in its quarterly dividend to $0.40 per share on November 15. Through this increase, the company stretched its dividend growth streak to 23 years. The stock supports a dividend yield of 2.03%, as of December 2.

NIKE, Inc. (NYSE:NKE) remained popular among elite money managers at the end of Q3 2024 with 75 hedge funds owning positions in the company, as per Insider Monkey’s database. The stakes owned by these funds have a collective value of more than $5 billion. Bill Ackman’s Pershing Square was the company’s leading stakeholder in Q3.