5 Dow Jones Dividend Stocks With Over 1% Yield

3. NIKE, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 72
Dividend Yield as of September 18: 1.17%

NIKE, Inc. (NYSE:NKE) is an Oregon-based multinational company that specializes in the design and production of footwear, apparel, and related accessories. In Q2 2022, the company remained popular among elite funds, as 72 hedge funds in Insider Monkey’s database owned stakes in it, compared with 67 in the previous quarter. These stakes have a consolidated value of over $3.3 billion.

In fiscal Q4 2022, NIKE, Inc. (NYSE:NKE) reported a strong cash position with $13 billion in cash and equivalents and other short-term investments. The company’s operating cash flow stood at over $1.15 billion and its free cash flow came in at $909 million. It returned $481 million in dividends during the quarter, up 11% from the prior year. In addition to this, the company also repurchased its shares worth $1.1 billion.

On August 4, NIKE, Inc. (NYSE:NKE) declared a quarterly dividend of $0.305 per share, consistent with its previous dividend. The company has been raising its dividends consistently for the past 20 years. As of September 18, this Dow Jones dividend stock has a yield of 1.17%.

In September, UBS lifted its price target on NIKE, Inc. (NYSE:NKE) to $156 and maintained its Buy rating on the shares. The firm appreciated the management’s conviction around its Consumer Direct Acceleration strategy, which is a positive step for the company’s revenue.

ClearBridge Investments mentioned NIKE, Inc. (NYSE:NKE) in its Q4 2021 investor letter. Here is what the firm has to say:

“Nike is another play on e-commerce as well as the anticipated growth in consumer spending as we learn to live with COVID-19. After selling out of the stock in 2016 due to competitive concerns, we were motivated to repurchase shares because of optimism around a new management team’s focus on accelerating Nike’s shift toward e-commerce and direct-to-consumer (DTC) distribution. Near-term supply chain issues in Vietnam and retail weakness in China that we see as ephemeral provided a good buying opportunity. We do not believe the market is giving proper credit to Nike’s potential to deliver attractive, high-single-digit revenue growth while delivering operating margin expansion as more merchandise is sold direct. Nike is also still underindexed to the women’s category, which we see as a significant ongoing catalyst.”