Nike shows its might with dividend hike of 12%
The company’s share price, up about 30% in 2020, has more than doubled since its March low as it slashed costs
Bengaluru — Nike said on Friday it would raise its quarterly dividend by 12%, or three US cents per share, underscoring the financial strength of the world's largest sportswear maker in the midst of the Covid-19 pandemic.
Nike said in September it expected sales in the second half of its fiscal year ending May 2021 to be “up significantly”, as it bounced back from a slump earlier in 2020 when retailers cancelled orders and lockdowns kept people away from stores in key markets.
The company’s share price, up about 30% in 2020, has more than doubled since its March low as it slashed costs by cutting corporate jobs and targeted online investments.
A cash dividend of 27.5 US cents per share on Nike’s outstanding class A and class B stock is payable on December 29.
2020 marks Nike’s 19th consecutive year of increasing dividend payouts, after raising quarterly payments 11% in 2019, and comes as many other companies either cut or pause shareholder returns due to the virus outbreak.
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