What Nike actually does
Nike designs and sells athletic footwear, apparel and equipment. Its brands include Nike, Jordan and Converse. It does not make most of its products itself; contract factories, mostly in Asia, do that, while Nike focuses on design, marketing and distribution.
How the business makes money
It sells through its own stores and apps (Nike Direct) and through retailers. Brand strength lets it charge premium prices, but its sales depend on fashion trends, new product launches and consumer spending.
The dividend story
Nike pays a quarterly dividend and has raised it for more than two decades. The yield is low, because the company has historically preferred to invest in growth. When profits dip, as they have in recent years, the raises can slow.
What to keep an eye on
- Competition. Newer running and lifestyle brands have taken some share.
- China. A big market with changing preferences.
- Inventory. Excess stock leads to discounts.
- Leadership and strategy. Turnarounds take time.
Quick take
Nike is a global brand with a small but growing dividend. The investment case depends more on its comeback than on income.