Nike (NKE 0.17%), one of the world's largest athletic footwear and apparel makers, was once considered a resilient blue chip stock. But over the past 12 months, its stock declined 25% as the S&P 500 advanced 24%.
Nike (NKE -0.55%) has been a top stock to own throughout its history. However, the business has struggled in recent years, and the stock has floundered.
The shares of retail behemoths Nike Inc (NYSE:NKE) and Lululemon Athletica Inc (NASDAQ:LULU) are both gapping lower today, after President Donald Trump imposed a 25% tariff on Mexico and Canada over the weekend, as well as a 10% levy on China.
The stock market's climb over the last few years has driven dividend yields to multiyear lows. The S&P 500 average yield is just 1.24% -- the lowest yield since 2000.
While it can be tempting to buy a hot stock when it's soaring in value, the returns may not be all that great if the stock is already trading at a high. If, however, you're willing to take a chance on a beaten-down stock, then the payoff could be much more attractive in the long run.
Nike Inc NYSE: NKE shares have been continuing to consolidate after a painful three-year downtrend that finally looks to be running out of steam. 2021's all-time high seems a long way away now, with shares nearly 60% lower and back at 2018 levels.
The goal of this portfolio is to achieve an optimal yield on cost in 10 years, not just grab the highest yielders. DeepSeek recently sent chip stocks reeling, bringing into question their true future demand and the supply chain surrounding them. Dividend stocks are largely not in AI-related sectors, with many names in staples, consumer discretionary, and healthcare being on sale.
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