Athletes wearing the Nike Vaporfly shoe during the Dubai Marathon in Dubai, United Arab Emirates, on January 24 2020. Picture: REUTERS/CHRISTOPHER PIKE
Athletes wearing the Nike Vaporfly shoe during the Dubai Marathon in Dubai, United Arab Emirates, on January 24 2020. Picture: REUTERS/CHRISTOPHER PIKE

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.

Reuters

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.