2 Dividend Stocks to Double Up on Right Now

Two dividend-paying stocks are trading at multi-year high yields: Nike and Verizon. Nike (annual revenue ~ $50bn) has seen its share price fall about 54% from its peak, pushing its forward dividend yield to roughly 1.83% (quarterly payout $0.37, highest since 2009); despite double-digit sales declines it remains profitable, pays a dividend roughly equal to half its quarterly earnings, has hired veteran Elliott Hill as CEO and is shifting back to core sports categories with early signs of recovery, making it a turnaround candidate but with timing uncertainty. Verizon offers a roughly 6.16% forward yield (quarterly $0.6775, ~60% payout ratio on 2024 guidance), has delivered stronger subscriber trends (consumer postpaid phone net additions +12% YoY), and benefits from recurring wireless/broadband cash flows plus potential upside from AI-enabled iPhone demand, supporting dividend sustainability for income-focused investors.

Analysis

Nike's shares have fallen about 54% from their prior peak while the company still generates roughly $50 billion in annual revenue; the share-price decline has pushed the forward dividend yield to approximately 1.83% (quarterly payout $0.37), the highest since 2009. Nike reported double-digit year-over-year sales declines in the most recent quarter but remains profitable and pays a quarterly dividend that is about half of quarterly earnings, suggesting near-term dividend sustainability despite cyclical pressure.

Management has hired former veteran Elliott Hill as CEO and is refocusing the portfolio from lifestyle back to core sports categories, with early fiscal Q1 2025 growth in men's fitness, global football and running footwear; Statista projects the global athletic-wear market to reach $293 billion by 2029, providing a supportive long-term market backdrop. The combination of experienced leadership and category reweighting improves the plausibility of a multi-quarter turnaround, but the company explicitly faces a timing and execution risk while sales recover.

Verizon offers a materially higher forward yield of about 6.16% (quarterly dividend $0.6775) and has seen shares rise ~16% year-to-date amid a reported 12% year-over-year increase in consumer postpaid phone net additions; the company has paid a dividend for 40 consecutive years and is operating with an implied payout ratio near 60% on 2024 adjusted guidance. Verizon's recurring wireless and broadband cash flows, plus value-add subscription bundles and potential upside from demand for AI-optimized iPhones, support dividend coverage, but dividend sustainability hinges on continued subscriber gains and service monetization.

Key Decisions for Investors

• Consider allocating to Verizon for income exposure given a ~6.16% forward yield, 60% payout ratio and recent +12% postpaid net additions, but size positions modestly and monitor subscriber trends and the consumer response to AI-enabled iPhones
• Treat Nike as a selective turnaround trade: its 1.83% yield and dividend coverage (quarterly dividend ≈50% of quarterly earnings) provide a cushion, so consider phased or small exposure to capture recovery under CEO Elliott Hill while watching sequential sales in men's fitness, global football and running categories
• Stagger entries or use position-size discipline to manage timing risk across both names and reassess holdings if upcoming quarterly sales or net-addition trends reverse materially or if management revises payout guidance