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Recent Articles
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Nike Has Posted 23 Consecutive Years of Increasing Dividend Payouts
Oct 5, 2025
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Image Source: TradingView.
During the first quarter of fiscal 2026, Nike returned $714 million to shareholders, consisting of dividends of $591 million, up 6% from the prior year, and share repurchases of $123 million. Nike has repurchased 124.4 million shares under its $18 billion program approved by the board in June 2022 for a total of approximately $12.1 billion. At the end of the quarter, inventories at Nike were $8.1 billion, down 2% compared to the prior year, while cash and short-term investments were $8.6 billion, down approximately $1.7 billion from last year. Nike continues to face pressure in its footwear division, though apparel sales were strong in the quarter. Footwear revenue fell 12% on a constant currency basis in China. Looking to the fiscal second quarter, revenues are expected to be down low single digits, while gross margins are expected to fall 300-375 basis points, including a net headwind of 175 basis points from tariffs.
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Costco’s Shares Are Not Cheap
Oct 5, 2025
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Image Source: Costco.
In the fourth quarter of fiscal 2025, Costco’s gross margin expanded 13 basis points, while SG&A as a percentage of sales dropped 17 basis points, bolstering operating income. Net income for the fourth quarter was $2.61 billion, $5.87 per diluted share, seven cents better than expected and compared to $2.354 billion, $5.29 per diluted share in last year’s quarter. Long-term debt totaled $5.7 billion at the end of the quarter, while cash and short-term investments were $15.3 billion. Merchandise inventories fell to $18.12 billion from $18.65 billion at the end of last year’s quarter. We like the fundamental momentum at Costco and its outlook remains bright, but its valuation is quite stretched at the moment. We remain on the sidelines.
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Valuentum's Dividend Growth Newsletter Portfolio
Sep 29, 2025
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We disclose the holdings of the Dividend Growth Newsletter portfolio in this article. This portfolio can always be found in each edition of the monthly Dividend Growth Newsletter.
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View Current and Archived Dividend Growth Newsletters
Sep 29, 2025
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View previous editions of the Dividend Growth Newsletter in this article. At Valuentum, we seek to deliver to our subscribers the best dividend growth ideas, and our Dividend Growth Newsletter does just that for dividend growth investors. The Dividend Growth Newsletter portfolio puts into practice our rigorous valuation and dividend growth frameworks. The Dividend Growth Newsletter portfolio is generally found on page 5 of each edition.
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