12 Best Consumer Cyclical Dividend Stocks to Buy Right Now

3. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 73

NIKE, Inc. (NYSE:NKE) is an American apparel and footwear company, headquartered in Oregon. Jefferies believes the company’s widespread brand presence and strong global distribution network will contribute to its future growth. The investment firm projects that Nike could achieve a compound annual growth rate of approximately 7%, outperforming the consensus analyst estimate of around 3%. Furthermore, Jefferies expects that the company’s new management team will enhance its product strategy, positioning it to exceed analysts’ average financial projections for fiscal 2027 by a significant margin. The firm has set a price target of $115 for the stock.

NIKE, Inc. (NYSE:NKE) faced challenges in the second quarter, particularly in China, where revenue declined by 8% year-over-year. However, the drop was not as steep as analysts had expected, as projections had pointed to a 10% decline. Meanwhile, gross margins saw a slight decrease, falling to 43.6% from 44.6% in the same period last year. Despite these setbacks, operating expenses were reduced by 5%, potentially allowing for reinvestment in marketing efforts.

NIKE, Inc. (NYSE:NKE)’s quarterly dividend comes in at $0.40 per share and has a dividend yield of 2.09%, as of March 4. The company remains focused on delivering strong shareholder returns, supported by its solid financial position. In the most recent quarter, it reported $7.9 billion in cash and cash equivalents, reflecting a 1% increase from the previous year. It also returned $1.6 billion to shareholders through dividends and share repurchases. With a track record of 23 consecutive years of dividend increases, Nike is regarded as one of the best dividend stocks in the consumer cyclical sector.