Dick’s Sporting Goods Doubles the Dividend. Is the Stock a Buy?

Dick's Sporting Goods stock is swimming around all-time highs after doubling its dividend and beating on earnings expectations. Let's look at the chart.

Dick’s Sporting Goods  (DKS) - Get Free Report stock is catching investors’ attention, with the shares up about 10% at last check.

The rally comes after the retailer reported earnings and more than doubled its quarterly dividend to $1 a share. It now yields about 3%, making it more competitive with that pesky 10-year Treasury yield.

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It also comes alongside a top- and bottom-line earnings beat of expectations, while guidance came in quite strong.

Management expects full-year earnings in a range of $12.90 to $13.80 a share vs. consensus expectations just below $12 a share.

Just a few days ago, Dick’s Sporting Goods stock made Morningstar’s list of undervalued stocks, which in hindsight was a great call.

Trading Dick’s Sporting Goods Stock on Earnings

The reaction to Dick’s Sporting Goods stock is not what we’ve seen from most big-name retailers this year. 

Stocks like Costco  (COST) - Get Free Report, Target  (TGT) - Get Free Report, Home Depot  (HD) - Get Free Report and others have struggled after the companies reported earnings.

But since Dick's bottomed in mid-2022, the shares have been marching higher. Now, all-time highs are within view.

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With Tuesday’s rally, Dick’s Sporting Goods stock traded up toward $146, which is the 161.8% extension from the recent pullback range. That’s a perfect spot for bullish traders to lighten up on their positions.

If the shares can continue higher, the all-time high at $147.39 is in play. Above $150 and the 261.8% extension of the recent pullback range is in play up near $157.50.

On the downside, the bulls would like to see the shares stay above the February high of $138.43, as well as the short-term moving averages like the 10-day and the 21-day.

So far, Dick's shares are doing an excellent job blocking out the noise and bucking the selling pressure in the overall market. If they keep doing that, traders may have a new stock to ride in what may be a turbulent market.

As always, mind your risk tolerance and realize the trend can change at any time.