You Can Do Better Than Nike. Buy This High-Yield Dividend Stock Instead.
Key PointsNike has received a lot of attention, but sales have been lackluster recently.
Instead of focusing on the low-performing Nike stock, consider investing in Procter & Gamble (PG), a company with a strong track record of dividend growth and stability. Nike's fiscal first-quarter revenue dropped 5% year-over-year, as the share price declined nearly 40% this year, while the S&P 500 index gained 12%. In contrast, Procter & Gamble continues to execute and reward investors with growing dividends.
The company sells everyday essentials like shampoo, razor blades, toothpaste, detergent, and diapers, products that maintain high market shares even during economic downturns. During the first fiscal quarter, Procter & Gamble's sales grew 4% year-over-year, with higher volume contributing 2.4 percentage points to the increase. The company's free cash flow, amounting to $15.1 billion in fiscal 2026, comfortably covered its $10.2 billion in dividends, ending on June 30.
With products that enjoy stable demand, high market shares, and strong cash flow, Procter & Gamble boasts an impressive dividend history. The company has paid a dividend for 136 years and raised dividends annually for an outstanding 70 consecutive years, earning it the title of a Dividend King. This distinction is reserved for companies that have raised dividends for at least 50 consecutive years.
Procter & Gamble offers a dividend yield of 2.6%, which is higher than the S&P 500's 1.1% yield. This makes Procter & Gamble a reliable and attractive investment option for those seeking steady dividend growth.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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