Analysis – Nike, Inc. Increases Dividend by 14%

NKE

Nike Incorporated announced a regular quarterly dividend of $0.32, a 14 percent increase from the prior rate of $0.28 per share. The dividend will be paid at the new higher rate on January 4, 2016, to shareholders of record at close of business on December 9, 2015.

Date Quarterly Dividend
12/9/2015 0.32
9/3/2015 0.28
5/28/2015 0.28
2/26/2015 0.28
12/11/2014 0.28
8/28/2014 0.24
5/29/2014 0.24
2/27/2014 0.24
12/12/2013 0.24
8/29/2013 0.21
5/30/2013 0.21
2/28/2013 0.21
12/6/2012 0.21
8/30/2012 0.18
5/31/2012 0.18
3/1/2012 0.18
12/1/2011 0.18
9/1/2011 0.155
6/2/2011 0.155
3/3/2011 0.155
12/2/2010 0.155
9/2/2010 0.135
6/3/2010 0.135
3/4/2010 0.135

Analysis of Valuation of Nike Inc. (Symbol NKE).

Nike is trading at the top of its average price/sale (P/S) range.  Nike is trading below its average historical dividend yield. 

Price 11/23/15 % Yield 5 Year Div. Growth Rate  SPS    2015 P/S Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$132.46 0.95% 18% 35.71 2.60 0.97 2.60 1.59% 0.84%

Nike Inc. Dividend Yield Chart (Click to enlarge)

NKE2

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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