Dividend Stock Portfolio For Income: Top 10 Stocks to Buy

5. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 73

NIKE, Inc. (NYSE:NKE) is an American apparel and footwear company. The company built a strong brand by featuring high-profile commercials and securing endorsements from top athletes, including basketball legend Michael Jordan. This brand strength translated into impressive sales, with footwear making up two-thirds of the company’s $23.9 billion in revenue for the first half of its fiscal year, which ended on November 30, 2024. In addition to footwear, the company also sells apparel and accessories such as bags, balls, bats, and gloves.

NIKE, Inc. (NYSE:NKE) faced challenges in the second quarter, particularly in China, where revenue declined 8% year-over-year. However, this drop was not as severe as analysts had projected, as they had expected a 10% decline. Meanwhile, gross margins dipped slightly to 43.6% from 44.6% in the previous year’s quarter. Despite these challenges, the company managed to cut operating expenses by 5%, which could allow it to reinvest in marketing efforts.

NIKE, Inc. (NYSE:NKE) also maintains a strong focus on shareholder returns, backed by a solid financial position. The company offers a quarterly dividend of $0.40 per share and has a dividend yield of 1.96%, as of February 25. In its most recent quarter, the company held $7.9 billion in cash and cash equivalents, marking a 1% increase from the previous year. It also returned $1.6 billion to shareholders through dividends and share repurchases. Nike has raised its dividend for 23 consecutive years, which makes it one of the best stocks for a dividend stock portfolio.