Dick’s Sporting Goods doubles the dividend. Is the stock a buy?

Dick’s Sporting Goods shares are swimming at all-time highs after doubling its dividend and topping earnings of one. Let’s look at the graph.

Dick’s Sporting Goods (dks) – Get a free reportstocks are drawing investor attention, up around 10% at last review.

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

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It also comes along with rising top and bottom line earnings expectations, while guidance was pretty strong.

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

Just a few days ago, Dick’s Sporting Goods stock was listed on Morningstar’s undervalued stock list, which in hindsight was a great decision.

Dick’s Sporting Goods Stock Trade in Profit

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 a free reportAim (TGT) – Get a free reporthouse deposit (High Definition) – Get a free reportand others have struggled after companies reported earnings.

But ever since Dick bottomed out in mid-2022, the stock has been rising. Now, all-time highs are in sight.

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With Tuesday’s rally, shares of Dick’s Sporting Goods rose to $146, which is the 161.8% extension of the recent retracement range. That is a perfect place for bullish traders to lighten their positions.

If the stock can continue higher, the all-time high of $147.39 is on the cards. Above $150 and the 261.8% extension of the recent retracement range is in play near $157.50.

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

So far, Dick’s stock is doing an excellent job blocking out the noise and withstanding selling pressure in the broader market. If they continue to do that, traders may have a new stock to ride in what can be a turbulent market.

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