If you’ve done much reading on this site, you are probably aware that I enjoy keeping watch lists on various sectors of the stock market. Nike Inc. $NKE not only resides on the consumer discretionary sector watch list, but has also made appearances on some of the high growth lists I’ve put together as well.
While Nike has been on my radar for some time, I have avoided purchasing it for two reasons:
- Valuation: Nike has generally traded with a PE in the high-20’s since I built my dividend growth portfolio in early 2013.
- Low Yield: Nike pays out just 30% of its earnings in dividends, which results in a yield below 1.5%.