Nike Stock Could Join an Exclusive Club. What to Know About the 'Dividend Aristocrats'

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Nike Stock Could Join an Exclusive Club. What to Know About the 'Dividend Aristocrats'

stock :: 2026-01-21 :: source - investopedia

By Kara Greenberg

Nike's stock could be set to join an exclusive club.

If the sports apparel giant raises its dividend again this year—as it's widely expected to—the stock will join what's known as the dividend aristocrats, a subset of S&P 500 companies that have raised their dividends annually for at least 25 years in a row. That reliability then makes them more attractive to investors who are seeking income as well as gains.

Currently, there are 69 dividend aristocrats. Three companies—Erie Indemnity (ERIE), Eversource Energy (ES), and FactSet Research System (FDS)—are among the newest entrants, having joined the group's ranks last year.

Why This Is Significant

Becoming one of the dividend aristocrats, which have a reputation for steadily rewarding their investors over the longer term, could help raise the appeal of Nike's stock by enhancing its perceived quality and reliability. Exchange-traded funds that track the group would also be pushed to buy the shares, which could boost the stock.

The dividend aristocrats have underperformed the broader market in recent years, with a total return of roughly 7% in 2025, including dividends, compared to the S&P 500's 18%. Still, they have sometimes outperformed during periods of heightened market volatility. When the 2008 financial crisis sent the S&P 500 tumbling 37% that year, the dividend aristocrats sustained a smaller 22% decline.

READ: Dividend Aristocrats: These Dividend Stocks Can Help You Generate Passive Income in 2026

For Nike's (NKE) stock, which has suffered lately, becoming a dividend aristocrat might add a "layer of credibility at a moment when the market is still debating the timing of [Nike's] recovery," Jefferies analysts said earlier this month. Shares of Nike are down over the past 12 months and off some 50% over the past five years.

Nike's stock, which fell about 9% over the past 12 months as the company continues to grapple with the impact of higher tariffs, intense competition, and challenges associated with its turnaround plans, remains well off its 2021 highs.

Still, Jefferies analysts said they would "buy shares aggressively," and called the stock a "top pick" for 2026, anticipating easing headwinds in China and improving sales in other regions soon under the leadership of Elliott Hill, who took over last October.

Jefferies' price target of $110 is well above the analyst consensus around $75 compiled by Visible Alpha. It suggests over 70% upside from Friday's close.