Nike Stock Plunges on Downgrade Amid Dividend Concerns

Nike Inc (NYSE: NKE) saw its stock price drop by 2% to $41.71 on August 4, following a downgrade to Underweight by JPMorgan.

The company's dividend yield of 3.84% is attractive for income investors, but the high payout ratio of 78% raises concerns about dividend sustainability despite a 7.1% dividend growth rate over three years.

The stock's GF Value of $73.13 suggests it is 41.7% undervalued, providing a valuation cushion for income-focused investors, according to GuruFocus.