A Stock Ignored By Investors
Dick's Sporting Goods (DKS) has had a rough go of it lately as increased competition, as well as lower traffic from consumers, have weighed. The company's recent decision to pull assault weapons from its shelves may cause a bit of shorter term pain, but the net impact over the long term should be a positive one in the eyes of consumers. Still, 2017 wasn't exactly a banner year for DKS as comps fell slightly for the entire year after a -2% showing in the critical fourth quarter. However, DKS recently raised its dividend rather substantially and it is now paying shareholders 2.7% to hold the stock. Given how cheap the shares have become and its higher yield, DKS actually looks somewhat enticing here for the first time in a while. This article will focus on the safety of the yield as well as the valuation of DKS in an effort to determine just how attractive the stock may be here.
