Nike Surpasses Coke on Dividend Yield Amid Turnaround Hopes
Nike's forward dividend yield of 4% is higher than Coca-Cola's 2.4%, making it a notable exception among Dividend Kings, which have raised their dividends for 50-plus straight years.
This elevated yield reflects Nike's lower share price despite continuing to pay a steady quarterly dividend, and some market analysts believe the company may be undervalued ahead of a successful turnaround.
Nike's latest results showed revenue declines, but the underlying story is getting more constructive, with improving fundamentals in key categories such as performance wear and running shoes.
The company's high yield is mainly due to its lower stock price rather than an inability to afford the payout, with Nike generating sufficient cash to support its quarterly dividend, especially given the expected rebound in fiscal 2027.