BEAVERTON, Ore. - NIKE, Inc. (NYSE: NKE) has announced an 8% increase in its quarterly cash dividend to $0.40 per share on its Class A and Class B common stock. The dividend is payable on January 2, 2025, to shareholders of record as of December 2, 2024. This marks the 23rd consecutive year of dividend increases for the company.
The move reflects Nike 's continued commitment to delivering value to its shareholders and its confidence in the financial strength of the company. The increase in the dividend rate from the previous $0.37 to $0.40 per share demonstrates a consistent pattern of dividend growth, which has been a hallmark of Nike's financial policy over the past two decades.
As a leader in the global athletic footwear and apparel market, Nike has maintained a strong market presence with a comprehensive portfolio of products designed for a wide range of sports and fitness activities. The company's subsidiary brand, Converse, also contributes to its overall market positioning with its athletic lifestyle footwear, apparel, and accessories.
This financial decision comes at a time when Nike continues to execute its growth strategy and maintain its status as a significant player in the sports and fitness industry. The consistent increase in dividends over the years underscores Nike's operational success and its ability to generate a steady cash flow.
The information regarding the dividend increase is based on a press release statement from Nike, Inc. Shareholders and investors may view further details about Nike's financial performance and other investor-related information on the company's website.
The dividend announcement is an essential indicator for investors, as it provides insights into Nike's financial health and its board of directors' outlook on the company's profitability and long-term growth prospects. It also reinforces Nike's reputation for providing shareholder returns, a critical aspect for current and potential investors.
As with all corporate financial decisions, the dividend increase is subject to approval by the company's board of directors and may be influenced by various factors, including market conditions and economic trends. However, based on the current announcement, shareholders can anticipate receiving the increased dividend at the start of the new year.
In other recent news, On Holding AG reported a surge in sales, particularly for its newly released running shoes, leading to an increased full-year sales forecast. The company's third-quarter sales climbed 32.3% to CHF 635.8 million, surpassing analyst projections. On Holding also reported a 23.2% increase in wholesale revenue to CHF 389.1 million, largely due to successful retail partnerships. However, the company's selling, general, and administrative expenses rose by 36% to CHF 312.7 million, reflecting the costs associated with expansion and partnerships.
Meanwhile, Nike Inc (NYSE:NKE). announced a reshuffling of its Senior Leadership Team, with the retirement of John Slusher, the company's Executive Vice President of Global Sports Marketing, and the appointment of Ann Miller to the position. Nike also extended its global partnership with the NBA, WNBA, and the NBA G League until 2035, reinforcing its position as the exclusive on-court uniform and apparel provider.
In response to economic volatility, several U.S. corporations, including Nike, have appointed seasoned executives as CEOs. Nike appointed Elliott Hill, a former senior executive, as its new president and CEO. UBS reaffirmed its Neutral rating on Nike shares, expressing optimism about Hill's suitability for the role but advising investors to wait and observe the long-term results of the new CEO's initiatives.
InvestingPro Insights
Nike's recent announcement of an 8% increase in its quarterly cash dividend aligns with its long-standing commitment to shareholder value. This move is further supported by InvestingPro data, which reveals that Nike has raised its dividend for 22 consecutive years and has maintained dividend payments for an impressive 41 consecutive years. This consistent dividend growth strategy underscores the company's financial stability and cash flow strength.
Despite the positive dividend news, InvestingPro Tips indicate that Nike is currently trading near its 52-week low, with its stock price at 61.33% of its 52-week high. This could present an opportunity for value investors, especially considering that the company's RSI suggests the stock may be in oversold territory.
However, investors should be aware of potential headwinds. InvestingPro data shows a revenue decline of 2.83% over the last twelve months, with analysts anticipating a sales decline in the current year. This is reflected in the quarterly revenue growth of -10.43% for the most recent quarter. Additionally, 19 analysts have revised their earnings downwards for the upcoming period, signaling some near-term challenges.
On the financial health front, Nike operates with a moderate level of debt, and its liquid assets exceed short-term obligations. This solid financial position supports the company's ability to maintain its dividend policy even in challenging market conditions.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Nike, providing a deeper understanding of the company's financial position and market outlook.
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