Nike, Inc. (NYSE:NKE) has long been synonymous with athletes everywhere. With the Rio Olympics going on and the free advertising with close-ups of just about every athlete what better time to analyze Nike as a potential investment than now? Nike has delivered investors 20.6% annual returns over the last decade and 12.2% returns over the last twenty years. There's very few companies that can maintain that level of consistency and wealth generating ability, yet Nike has done superbly.
Nike has extremely strong brand strength with consumers routinely buying more product and willing to pay more for that "Nike Swoosh" on the side of the shoes. Nike's brand strength might be untouchable and the company high quality, but that doesn't mean it makes for a good investment if the market is valuing the shares to richly. Let's examine why Nike is an excellent company and then we'll see if we should purchase some shares.
How about that dividend?
The quality of a company is crucial to an investor looking to own the company forever. However, determining the quality is difficult so I look to the numbers. Companies don't just stumble into decades long dividend growth streaks which is why the dividend history is one of my first stops when analyzing a company.
Nike's streak sits at 14 years currently based on calendar year payouts. That gives them the title of Dividend Contender.