One Magnificent Dividend Stock Down 71%: Too Cheap Not to Buy and Hold Forever

By Jeremy Bowman – Mar 27, 2026 at 10:00PM ESTKey PointsNike now offers a dividend yield above 3%.New CEO Elliott Hill's turnaround efforts are starting to show results.Nike's profits are falling as it clears inventory and resets the business. Most investors don't like to see stock prices go down. While net buyers of stocks do benefit from lower prices, the paper losses can make you feel poorer and signal a risk of the market going down further. There is a silver lining to sell-offs, however. Dividend yields go up, making these pullbacks good opportunities to buy dividend stocks as their prices are down as well. One dividend stock worth a closer look right now is Nike (NKE 1.34%), which currently offers a yield of 3.2%. Unfortunately, the bump in its yield is more due to the stock's collapse since the pandemic rather than from dividend hikes, though the sportswear giant has a solid track record of raising its quarterly payout. Nike stock is now down 71% from its all-time high in 2021, and the stock has continued to fall this year, sliding over the last month on the Iran war as rising oil prices and global turmoil that could spark a recession spell potential trouble for Nike. However, prior to the Iran scare, Nike's prospects for a turnaround were looking promising. Image source: Nike. Nike is showing signs of recovery Nike brought in CEO Elliott Hill to turn the business around a year-and-a-half ago after a disastrous tenure under former CEO John Donahoe. Hill has been trying to right the wrongs committed under his predecessor, who was overly committed to the digital and direct-to-consumer channels, alienating key retail partners, and leaning too much on classic styles, while neglecting to innovate. Under Hill, Nike has returned to growth in running, a key category, and it delivered positive, though modest, revenue growth over the last two quarters after five quarters of declines. There's still a lot of work to be done, and macro-level challenges around discretionary spending have plagued both Nike and peers like Deckers and Lululemon, while China has also been a drag on Nike's performance. Profits are expected to continue to fall as the company is seeking to clear inventory in certain legacy styles, and invest in innovation. However, the overall brand still looks strong. Nike continues to dominate markets like basketball, and its roster of athletes is unmatched in the industry. The stock isn't likely to deliver a quick turnaround, but it looks oversold at this point, based on its potential. We'll learn more when the company reports third-quarter earnings on March 31. Analysts are expecting revenue to fall 0.4% to $11.2 billion and for earnings per share to decline from $0.54 to $0.28. While those are ugly numbers, it gives the company a low bar to hop over, and investor attention is likely to be on guidance and forward commentary. Read NextMar 27, 2026 •By Leo SunShould You Buy Nike (NKE) Stock Before March 31?Mar 27, 2026 •By Micah ZimmermanShould You Buy Nike Stock Before March 31?Mar 25, 2026 •By Bram BerkowitzWith the Stock Down Roughly 60% Over the Past 5 Years, Should Investors Buy Nike Before March 31?Mar 22, 2026 •By Rachel WarrenBest Apparel Stocks to Buy in 2026 and How to Invest in ThemMar 20, 2026 •By Daniel SparksNike Stock Has Been Absolutely Slammed, Bolstering Its Dividend Yield. Is This a Buying Opportunity?Mar 20, 2026 •By Neil PatelBetter Stock to Buy Right Now: Nike vs. LululemonAbout the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanStocks MentionedNikeNYSE: NKE$51.36(-1.36%)-$0.71Deckers OutdoorNYSE: DECK$94.05(+0.38%)+$0.36Lululemon Athletica Inc.NASDAQ: LULU$145.85(-3.66%)-$5.54*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.