Columbia Sportswear Company (COLM): Which of These Sports Apparel Makers Will Suit Your Portfolio Best?

Columbia Sportswear is, likewise, cheerless in the guidance for its 2013 full year. The company expects approximately 6.6% operating margin, including the charges in restructuring and resultant costs and income deferral related to its China JV coming online. It also expects a slight decline in net sales.

Conclusion: Buy on weakness

To conclude, Columbia Sportswear Company (NASDAQ:COLM) and NIKE, Inc. (NYSE:NKE) still look worthy of inclusion in a stock watchlist. Both stand to benefit from the rising consumer spending in their U.S. home market and have established themselves as strong choices among Mainland China consumers. Notably, stirrings of a recovery in European consumer spending too have been felt recently.

These factors provide reason to expect that these companies can sustain or even improve, at the very least, their annual dividend yields. Columbia Sportswear’s yield of 1.40% and the 1.30% for NIKE, Inc. (NYSE:NKE) are notably among the highest payout rates in their industry. Positioning on weakness, though, seems a prudent approach as the current valuations of these equities at about 20 times their earnings aren’t exactly cheap.

Arturo Cuevas has no position in any stocks mentioned. The Motley Fool recommends Nike. The Motley Fool owns shares of Nike.

The article Which of These Sports Apparel Makers Will Suit Your Portfolio Best? originally appeared on Fool.com.

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