Is a Dividend Cut Inevitable for Nike?
Dividend payments are never a guarantee. If a company is doing well and its stock is rising, there usually won't be any significant questions about whether its Dividend is safe and sustainable. But once a company runs into trouble, all that can change.
(NYSE: NKE) has been facing plenty of adversity in recent years. The apparel company has been struggling to grow sales, margins have been declining, and the business is in the midst of a turnaround, trying to fix things before the stock falls even further. In five years, it has already lost more than 60% of its value.
This also begs the question of whether its dividend is still safe. At 3.6%, it's now more than three times the average S 500 yield of 1.1%. And while that payout might give investors an incentive to hang on and wait, can it truly be relied upon, or is a dividend cut inevitable?
Source Fool.com
Nike Inc. B Stock
Our community is currently high on Nike Inc. B with 71 Buy predictions and 5 Sell predictions.
With a target price of 64 € there is a hugely positive potential of 81.74% for Nike Inc. B compared to the current price of 35.22 €.
