Stocks that reflect Americans’ love of sports. If it seems like the height of sports season that’s because in the U.S. of Athletics, it always is. From basketball, football and hockey in fall we’ll have…
Stocks that reflect Americans’ love of sports.
If it seems like the height of sports season that’s because in the U.S. of Athletics, it always is. From basketball, football and hockey in fall we’ll have baseball, golf and horse racing in the spring and summer, with extreme sports and even pro wrestling squeezed somewhere in between. As for whether pro wrestling is actually a sport, let’s not touch that one — but it certainly is a stock, as World Wrestling Entertainment (ticker: WWE) is a bona-fide place to slam some cash on the mat. Here’s a roundup of seven sports-related picks for which the gaming season is always ripe for investors.
Up 4 percent the last 12 months in the over-the-counter market, this German shoemaker has a $15.48 forward dividend and just brought back basketball silhouette shoes to the U.S. after a 20-year absence. “Puma is launching the Clyde Court Disrupt in stores and online,” says Christopher Ma, director of the George Investments Institute at Stetson University in DeLand, Florida. “Puma has basketball stars Marvin Bagley III, Zhaire Smith, Michael Porter Jr. and Skylar Diggins-Smith wearing them on and off court.”
While horse racing fans associate it with the Kentucky Derby, Churchill Downs is much more — with holdings in casinos and online gaming. “The company has had an outstanding performance over the past 52 weeks, rising by 36 percent,” says Robert R. Johnson, professor of finance at Creighton University’s Heider College of Business. Its yearly dividend of $1.52 cents per share has more than doubled since 2014. “But it’s not a dividend play, as the yield is a paltry 0.54 percent.”
To borrow from golf parlance, ELY’s dividend is well under par: just 1 cent per share, a level that it’s been stuck at for at least seven years. But in terms of share price, Callaway has been an eagle all the way. At $30 per share, it’s enjoyed an uninterrupted run up over the last five years, up 167 percent. Meanwhile, it’s hard to find a sports stock analysts like more, as eight of 11 call it a “strong buy.”
For all the controversy over its Colin Kaepernick ad, Nike continues to score investor touchdowns. Besides quarterly dividends of 20 cents per share, Nike stock is up 19 percent in 2018 and has enjoyed a dependable Olympic bounce. “Its stock has increased 25 percent on average over the course of the summer for the last five Olympics,” Ma says. Though a legacy global brand, Nike “has aggressively embraced the power of digital to enhance most facets of its business.”
This exchange-traded fund tracks what’s known as the Pro Sports Sponsors Index — that is, the companies that bring you the games you love in four major U.S. professional leagues. In its first year ending on July 11, the FANZ fund realized its intended goal of beating the S&P 500: “FANZ achieved a return of more than 17 percent with a dividend yield above 2 percent,” says Nick Fullerton, co-founder at SportsETFs.
Impresario Vince McMahon’s empire has seen Hulk Hogan-sized returns this past year, soaring 280 percent to a share price of $82.50. On the dividend side of things, it’s been flat in terms of yield (0.6 percent) and quarterly returns (12 cents per share) since 2011. And while there are concerns as to what will happen when the billionaire McMahon, now 73, gets too old to guide his juggernaut, analysts remain bullish, with nine of 11 calling WWE a “strong buy.”
Ever present in strip malls across America, Dick’s has built up its sporting muscle by showing extra strength in e-commerce. Add to that “the ability to identify necessary business model changes, disciplined inventory management and strong capital allocation,” Ma says. Its annual dividend rate of 90 cents per share is up more than 50 percent since 2016, “and the company is checking virtually all the boxes that ensure survival as an omnichannel retailer heading into the next decade.”