Dobermans of the Dow: 10 Stocks to Consider

5. NIKE, Inc. (NYSE:NKE)

Free Cash Flow Yield: 0.05

Number of Hedge Fund Holders: 73

NIKE, Inc. (NYSE:NKE) is an Oregon-based apparel and footwear company. It faced headwinds in the second quarter, particularly in China, where revenue declined by 8% year-over-year. However, the drop was less severe than expected, as analysts had anticipated a 10% decline. Meanwhile, gross margins edged down to 43.6% from 44.6% in the same period last year.

NIKE, Inc. (NYSE:NKE) has faced challenges for some time, with its stock price declining over 24% in the past year. However, its year-to-date return has rebounded by nearly 4%, indicating a potential recovery. This improvement is largely due to the company’s strong market presence, which provides a competitive edge. With ample resources, it can sponsor high-profile athletes, supply uniforms for professional sports leagues, and attract consumer interest through strategic partnerships—such as its recently announced collaboration with Kim Kardashian’s SKIMS. In addition, the company managed to cut operating expenses by 5% in the most recent quarter, which could free up resources for marketing initiatives.

NIKE, Inc. (NYSE:NKE) remains committed to delivering strong shareholder returns, backed by its solid financial standing. In the latest quarter, the company reported $7.9 billion in cash and cash equivalents, reflecting a 1% increase from the prior year. It also returned $1.6 billion to shareholders through dividends and share repurchases. The company has been raising its dividends for 23 consecutive years. Currently, it pays a quarterly dividend of $0.40 per share and has a dividend yield of 2.09%, as of March 10.