A once-in-a-decade buying opportunity? This great dividend stock is at a bargain price right now.

Nike (NYSE: NE) has seen better days. The leading athletic shoe and apparel maker’s stock is now nearly 60% below its peak from a few years ago. It’s down 40% from its 52-week high. That’s led to Nike trading at its lowest valuation in more than a decade.

THE shoe stock The fall in prices has also pushed up It is dividend yield to more than 2%. This is its highest level since the financial crisis and well above the S&P 500‘s average (around 1.3%). That’s a compelling level, given the company’s exceptional record of increasing its dividend. Here’s a look at why now could be one of the best times to buy Nike in years.

Working to solve the problems created

Nike is facing problems of its own making. The company has focused so much on growing its online sales that it has cut ties with several retailers. This strategy left the company wide open to competition in THE physical retail worldwhere customers could try competing products. As a result, its wholesale sales have fallen while its direct sales have also slowed.

Since then, the company has worked to rebuild its relationships with wholesalers to reverse its declining sales in those markets. However, its direct sales have continued to weaken. This was highlighted in its latest earnings report. In its fiscal fourth quarter (ended May 31), revenue fell 2% to $12.6 billion as a 5% improvement in wholesale sales couldn’t offset an 8% decline in NIKE Direct revenue.

“We are addressing our near-term challenges,” CEO John Donahoe said in the quarterly earnings press release. He noted that the company is make progress by continuing to innovate, “evolving at the pace of the consumer” and focusing on the entire market.

However, the company expects its troubles to persist in the near term. After posting a modest 1% increase in revenue in its last fiscal year, Nike expects its sales to decline by a single-digit rate in the current fiscal year. That surprised analysts, who had expected a modest increase on average. The company plans to invest heavily in product innovation, sales and marketing to re-embark on a growth path.

The blue chip dividend stock is on sale

Despite falling revenue, Nike remains highly profitable. The company’s measures to improve its margins paid off last year. Net income rose 12 percent to $5.7 billion, or $3.73 per share.

With the stock price falling, Nike NOW Nike is trading at a bargain basement price of about 19 times earnings. That’s its lowest level since 2012 and well below its peak of 85 as it emerged from the worst years of the pandemic in 2021. Nike is also cheaper than the broader market (the S&P 500 P/E ratio is about 26).

The story continues

This is an attractive level for a company that has a strong track record of dividend growth. The company has increased its payout for 22 consecutive years, including by 9% last November.

Despite slow sales, Nike should have no problem continues to increase its payment. The company’s operating cash flow increased by 27% last year to reach 7.4…