Are Dividend Stocks Tax-Efficient? 10 Picks by the Financial Media

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6. NIKE, Inc. (NYSE:NKE)

NIKE, Inc. (NYSE:NKE) is one of the dividend stocks picked by financial media as investors ask whether dividend stocks are tax-efficient. On June 30, Nike reported fiscal 2026 fourth-quarter and full-year results and said it returned about $609 million to shareholders through dividends in the fourth quarter, up 3% from the prior year. For fiscal 2026, shareholder returns totaled about $2.5 billion, including $2.4 billion in dividends and $123 million in share repurchases.

That shareholder-return disclosure keeps the focus on capital allocation rather than product momentum. Nike’s regular dividend is the kind of corporate payout that may qualify for lower tax rates when investor-level rules are satisfied. The modest buyback component also shows why dividend tax efficiency is relative. Repurchases can return capital in a way that does not force every shareholder to recognize cash income immediately, while dividends do. Nike’s latest results still leave the income case tied to business recovery, margin repair, and capital allocation discipline rather than tax treatment alone.

NIKE, Inc. (NYSE:NKE) designs, markets, and distributes athletic footwear, apparel, equipment, and accessories for sports and fitness activities.

While we acknowledge the potential of NKE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NKE and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see 5 Dividend Stock-Picks by the Financial Media as Investors Ask Whether Dividend Stocks Are Tax-Efficient.

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