Nike's most recent trend suggests a bullish bias. One trading opportunity on Nike is a Bull Put Spread using a strike $97.00 short put and a strike $92.00 long put offers a potential 38.5% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $97.00 by expiration. The full premium credit of $1.39 would be kept by the premium seller. The risk of $3.61 would be incurred if the stock dropped below the $92.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Nike is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Nike is bullish.
The RSI indicator is at 73.19 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Nike
What to Expect in the Markets This Week
Sun, 15 Dec 2019 16:11:07 +0000
Central bank meetings in Asia and England and earnings reports from Nike and Micron dominate the last full week of 2019.
Week ahead: Impeachment vote, BoE, FedEx and Nike
Sun, 15 Dec 2019 08:00:26 +0000
The UK general election may be over and a “phase one” trade deal between the US and China agreed, but there is still much that should keep the news cycle from slowing too much before the holidays. Richard Nixon resigned before a House vote.
Nike salutes ‘everyday heroes’ with new shoe
Fri, 13 Dec 2019 21:59:44 +0000
Nike called Air Zoom Pulse the shoe for everyday heroes. Supposedly product testing took place in the field at Doernbbecher Children's Hospital in Portland, Oregon. Yahoo Finance’s sneaker guru Reggie Wade joins The Final Round to talk about the shoe.
Dow Jones Today: A Trade-Induced Hangover
Fri, 13 Dec 2019 21:29:34 +0000
Stocks surged Thursday on the back of movement on Phase I of a trade deal between the U.S. and China, but the party may have been a little too raucous because there was some hangover today as equities barely budged.Source: Provided by Finviz * The S&P 500 added just 0.01% * The Dow Jones Industrial Average eked out a gain of 0.01% * The Nasdaq Composite advanced 0.20% * For the second time this week and again on light news, American Express (NYSE:AXP) was in the spotlight, leading the Dow on what appears to be a technical breakoutSo here's where we're at with trade: Phase I appears to be a go and the tariffs that the U.S. was set to impose on Chinese imports on Sunday will be averted, explaining why Apple (NASDAQ:AAPL) ascended to a record high today.Explaining why Thursday's ebullience waned today, the White House is leaving in place some of the tariffs it previously levied on Chinese goods.InvestorPlace – Stock Market News, Stock Advice & Trading Tips"We have agreed to a very large Phase One Deal with China," said President Trump on Twitter. "They have agreed to many structural changes and massive purchases of Agricultural Product, Energy, and Manufactured Goods, plus much more. The 25% Tariffs will remain as is, with 7 1/2% put on much of the remainder."In speaking with the press today, Trump mentioned desire on China's part to get to work on Phase II of a trade package, but investors should not expect much action on that front over the near-term. * The 10 Worst Dividend Stocks of the Decade With just 13 of the 30 members higher in late trading, the Dow was likely reflecting expectations that Phase I is as good as gets for the time being. Fighting Off DataThe Commerce Depart said today that U.S. retail sales rose 0.2% last month, well below the 0.5% increase economists were expecting, a scenario almost universally blamed on Thanksgiving arriving a week later than usual. Taking some of the sting off that result was the October number being revised up to growth of 0.4%."The data suggest a slowdown in business investment and weakness in manufacturing is weighing more broadly on Americans' willingness to spend, which could mean a soft holiday-shopping season despite a relatively strong labor market, improved wage gains and record stock prices," according to Bloomberg.That's a somewhat gloomy take, the accuracy of which is challenged by the fact that on a day in which a weaker-than-expected retail sales number was revealed, Home Depot (NYSE:HD), McDonald's (NYSE:MCD) and Walmart (NYSE:WMT), Dow stocks with significant exposure to consumer spending, all traded higher. Speaking of the Consumer…Nike (NYSE:NKE) was another one of the Dow's consumer discretionary names trading modestly higher today. Nike is a name to watch over the next several days because the athletic apparel giant reports fiscal second-quarter results on Dec. 19.Wall Street is expecting year-over-year earnings per share growth of 10.5% on sales growth of 7.5%. Investors appear to be betting on a solid report from Nike because the stock is up more than 9% just this month. Gaming UpdateMicrosoft (NASDAQ:MSFT) added nearly 1% today after the company revealed plans for the Xbox Series X, the next generation of its popular video game console. As I've recently noted, 2020 is setting up to be a big year on the hardware upgrade front in the video game industry where Microsoft is one of the dominant players.Microsoft "said it will run 4K graphics at 60 frames per second, though the system has the capabilities to hit up to 120 FPS, with support for Variable Refresh Rate and 8K capability," reports Barron's.Both the Xbox Series X and the rival PlayStation 5 will be available during the 2020 holiday shopping season. Financial FunAs noted above American Express was a Dow leader today, but the same can't be said of fellow Dow financial components JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GS). * 7 ETFs That Investors Charged Into This Year However, it's worth noting that the broader financial services sector is breaking out to multi-year highs and that the group remains attractively valued. More upside could be in store next year. Bottom Line on the Dow Jones TodayAlthough Nike reports next week, there's some time between now and the true start of fourth-quarter earnings season, but there are some data points for investors to mull in that regard."The estimated (year-over-year) earnings growth rate for CY 2019 is 0.3%, which is below the 10-year average (annual) earnings growth rate of 9.1%," notes FactSet. "If 0.3% is the actual growth rate for the year, it will mark the lowest annual growth rate for the index since CY 2015 (-0.6%). Six sectors are projected to report year-over-year growth in earnings, led by the Utilities and Health Care sectors."As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade * 7 Tech Stocks to Stuff Your Stocking With * 7 Sinfully Good Casino Stocks That Could Win the Jackpot in 2020 The post Dow Jones Today: A Trade-Induced Hangover appeared first on InvestorPlace.
7 of the Decade’s Fastest-Growing Dividend Stocks
Fri, 13 Dec 2019 17:21:35 +0000
People generally assume that a dividend stock has to have a high starting yield to generate lots of income. This is a mistaken assumption. In fact, you often earn more income over the long-run buying a fast-growing company with a low starting dividend yield, than one with a large current yield but minimal growth prospects.Think about capital allocation for a second. When a company has many ways to grow its business internally, it generally shouldn't pay a huge dividend. As shareholders, you get more value from the company opening more stores, factories, and whatnot to grow the business. Frequently, by the time a company starts paying a huge dividend, it is a sign of a corporation getting up there in years; the company no longer has tons of vigor to keep expanding. A mature company can pay large dividends for decades, but it won't have jaw-dropping earnings and dividend upside any more. * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade Oftentimes, the best way to get a dividend yield is by buying a company as it is just starting to transition from all-out growth toward stable maturity. You get a company that has started to pay a dividend, but still has plenty of opportunities to reinvest in their business and keep earnings moving sharply higher. Let's start looking at these underappreciated dividend growth machines with arguably the decade's most iconic example.InvestorPlace – Stock Market News, Stock Advice & Trading Tips Apple (AAPL) * Dividend growth since 2009: Dividend payments began in 2012 * Yield-on-cost for Dec. 2009 purchase: 10.2% * Dividends received this decade if you invested $10,000 in Dec. 2009: $5,605Source: George Dolgikh / Shutterstock.com Apple (NASDAQ:AAPL) is one of the decade's most impressive dividend stories. Previously, Apple had last paid a dividend way back in 1995. As the company's fortunes faded, it had to suspend its dividend altogether during the lean years. After the turn of the century, the outlook started to improve with the iPod and subsequent new product launches.For years, Apple piled up more profits and cash as iPhone sales exploded. In 2012, the company realized that it was running out of great new growth opportunities, and the company's treasury was overflowing. So, after a 17-year drought, Apple kicked off paying a healthy sum out to shareholders once again.They launched with a $1.51 per year dividend in 2012, and have steadily hiked it since then. Impressively, despite not starting a dividend payout until 2012, if you had invested $10,000 at the end of 2009, you'd have already gotten back $5,605 in dividends on your starting investment. The yield-on-cost — that is to say your annual yield on your starting investment — topped 10% as well. Income investors that skipped AAPL stock a decade ago because it didn't pay a dividend ended up missing one of the 2010's best yield plays. Visa (V) * Dividend growth since 2009: 26.1% per year compounded * Yield-on-cost for Dec. 2009 purchase: 5.5% * Dividends received this decade if you invested $10,000 in Dec. 2009: $2,295Source: Shutterstock Credit card network giant Visa (NYSE:V) launched its Initial Public Offering in 2008. Despite the inopportune timing to go public, Visa stock has been a nearly-instantaneous winner for its investors. Despite that, it didn't initially appear to be much of a dividend-paying stock. Visa paid just 11 cents per share in dividends in 2009; that calculated out to just a 0.5% dividend yield based on Visa's then-$22 stock price.Times have changed though. For one, Visa's stock is up almost 10x over the past decade and now trades around $180. Visa's dividend payments are up by a similar amount, with the annual payout jumping from 11 cents a year to a dollar a year per share. * The 10 Worst Dividend Stocks of the Decade The company's success comes from several factors. For one, it only has one true global competitor, Mastercard (NYSE:MA). Other rivals have failed to achieve the necessary scope to really compete. Also, the purchase of Visa Europe a few years ago was a great move that provided more growth runway than investors had expected. Though disruption may eventually come from newer financial payment technologies, for now, Visa remains an unexpected dividend growth stock superstar. Nike (NKE) * Dividend growth since 2009: 13.3% per year compounded * Yield-on-cost for Dec. 2009 purchase: 6.1% * Dividends received this decade if you invested $10,000 in Dec. 2009: $3,402Source: TY Lim / Shutterstock.com Just over the past year or so, apparel giant Nike (NYSE:NKE) has started to get some attention as a leading dividend growth stock. The company is well-positioned internationally, as it has grown sales in China and other key emerging markets. This has helped Nike post double-digit EPS growth for years and has led to a sharply rising Nike stock price.Long-time Nike stock owners will know that the company has been increasingly generous with its dividends as well. Like numerous stocks on this list, Nike never looked like much of a dividend payer, as its current annual yield is usually around 1%. That's right in line with where it is now; Nike pays 1.02% at the moment.So how has Nike delivered such compelling dividend growth over the past decade? Simple: it compounds. By growing the dividend at more than 13% per year, a starting 1% yield quickly becomes so much more. In fact, if you bought $10,000 of Nike stock a decade ago, you're now getting $610 per year in income. Additionally, you've earned back more than a third of your starting investment in dividends cumulatively. Let Nike be an example of the power of a fast-growing dividend to pile up plenty of wealth in just one decade. Texas Instruments (TXN) * Dividend growth since 2009: 20.4% per year compounded * Yield-on-cost for Dec. 2009 purchase: 13.8% * Dividends received this decade if you invested $10,000 in Dec. 2009: $5,787Source: Katherine Welles / Shutterstock.com If you think of superstar tech stocks, Texas Instruments (NASDAQ:TXN) probably wouldn't be the first name that comes to mind. But the Dallas-based firm has become a mega-successful semiconductor firm in its own right.TXN stock has surged from less than $25 per share in 2009 to $125 now. And it has managed tremendous dividend growth as well, as it has put up a compounded growth rate of more than 20% per year. It has one of the most impressive dividend stories of America's large-cap stocks, in fact. Had you bought $10,000 worth of Texas Instruments at the end of 2009, you'd have already received back nearly $6,000 today. On top of that, you'd be getting $1,380 dollar a year in dividends going forward off your initial $10,000, which makes for a whopping 14% yield on cost.How has Texas Instruments managed this feat? It's due to three separate mechanisms. For one, the company has matured and slowed down growth, instead ratcheting up its dividend payout ratio. It's a classic example of the process I discussed at the top of this article where a company converts from aggressive expansion to a more balanced approach. Where it has grown, it has done so strategically, focusing on long-life semiconductor chips for applications such as sensors and automobiles where there is less competition than in other categories such as cell phones, CPUs, or memory chips. * 7 Energy Stocks That Are Still Worth Buying In 2020 Finally, Texas Instruments has utilized fantastic capital allocation. The company was quick to take advantage of low interest rates, issuing billions in debt earlier this decade for interest rates of less than 2%. It used this to buy back stock, driving up EPS and allowing it to pay a much larger dividend on its remaining outstanding shares. This combination of smart expansion and crafty financial dealings allowed Texas Instruments to be one of the decade's top growth and income stocks. Estee Lauder (EL) * Dividend growth since 2009: 19.0% per year compounded * Yield-on-cost for Dec. 2009 purchase: 7.9% * Dividends received this decade if you invested $10,000 in Dec. 2009: $4,218Source: Shutterstock Luxury cosmetics company Estee Lauder (NYSE:EL) checks a lot of the same boxes as Nike. Like Nike, Estee Lauder has enjoyed unmatched success in China, Hong Kong, and other key Asian markets. Like Nike, EL is benefiting from a huge wave of global prosperity and rising consumer spending in almost every corner of the world. And like Nike, Estee Lauder benefits from international media.Nike has its amazingly effective athlete endorsements to sell product. Meanwhile, Estee Lauder has tapped into Instagram culture to sell more makeup and cosmetics products than ever before.While Nike is more of a household name for many investors, Estee Lauder has managed to top its consumer goods peer in dividend growth. Impressively, Estee Lauder has put up 19%/year dividend growth such that its generally low current dividend yield has exploded into an absolute income machine over the past decade. Shares purchased ten years ago now pay nearly 8% per year, and an initial $10,000 investment has kicked out more than $4,200 in dividends already.And the good times should keep on rolling, as Estee Lauder has numerous tailwinds at its back. The rise of global travel in particular is of great benefit, as Estee Lauder sells a remarkable amount of products in airport shops; turns out people with spending money are eager to buy expensive products during their vacations. And that, in turn, will put even more dividends in Estee Lauder stockowners' pockets in coming years. Hormel Foods (HRL) * Dividend growth since 2009: 16.9% per year compounded * Yield-on-cost for Dec. 2009 purchase: 8.8% * Dividends received this decade if you invested $10,000 in Dec. 2009: $5,057Source: Mike Mozart via Flickr (Modified)Income investors tend to love the food and beverages sector. There are plenty of iconic American companies in this category, and many of them have paid rising dividends for decades on end. What's less-known, however, is that the smaller, more dynamic food companies often top the bigger ones.A beverage stock like Coca-Cola (NYSE:KO) is widely known and loved. No less a super-investor than Warren Buffett is a huge fan. Yet KO stock delivered a rather ordinary decade of dividends. It grew its dividend at just 7%/year compounded, and offers a yield-on-cost of 6% if you bought in 2009.Hormel Foods (NYSE:HRL), the maker of Spam, Skippy peanut butter, Wholly Guacamole, and a wide range of other foods has easily topped staid giants like Coca-Cola. Hormel grew its dividend by nearly 17% per year over the past decade, and investors that bought in 2009 are now getting a 9% annual dividend on their purchase. Impressively, anyone that bought then has now gotten back more than half their starting investment in dividends. * 7 Exciting Biotech Stocks to Buy Now What's the key to Hormel's success? The company has tons of organic growth; it has more than tripled revenues and earnings this decade. That far eclipses most food and beverage rivals. Also, the company's debt-free balance sheet means it doesn't have to pay interest, freeing up more money for dividends. Broadridge Financial (BR) * Dividend growth since 2009: 17.3% per year compounded * Yield-on-cost for Dec. 2009 purchase: 8% * Dividends received this decade if you invested $10,000 in Dec. 2009: $4,671Source: Shutterstock Broadridge Financial (NYSE:BR) is probably the least-known company on this list. Which goes to show that you can get fantastic dividend growth from smaller and less famous companies.While Broadridge isn't a household name, you've almost certainly used its services. That's because the company dominates proxies, which is how corporations communicate with us shareholders. When you get mail or digital communications about annual meetings, shareholders votes, or any other such matter, Broadridge is usually the service provider. The company provides additional financial services such as operating automatic dividend reinvestment plans (DRIP) for shareholders.Maybe not the world's most exciting business, but it is a vital one. Get anything wrong, and investors would be infuriated. So companies and brokerages have little incentive to switch service providers to save a tiny sum of money compared to the potential downside from dissatisfied customers. Meanwhile, the need for these functions continues regardless of how the economy is going; Broadridge's earnings fell less than 5% even during the Great Financial Crisis.The company's indispensable services and strong cash flow have made it a champion dividend payer. It grew dividends more than 17%/year last decade, and is now paying out 8%/year of dividends on an initial 2009 investment. With the company now moving into software for wealth management services, investors should expect Broadridge's latest expansion efforts to lead to even more income growth over the next decade.At the time of this writing, Ian Bezek owned TXN, EL, HRL, and BR shares. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade * 7 Tech Stocks to Stuff Your Stocking With * 7 Sinfully Good Casino Stocks That Could Win the Jackpot in 2020 The post 7 of the Decade's Fastest-Growing Dividend Stocks appeared first on InvestorPlace.
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