Nike announced on Friday it would raise its quarterly dividend by 12% or 3 cents per share, a rare reflection of financial strength in the middle of COVID-19 pandemic, according to the company’s press release. Dividend rises reflect expected sales in the second half of the fiscal year ending May 2021, which the company expects to rise “significantly.”
- Nike has approved a cash dividend of $0.275 per share on outstanding Class A and B stock payable on December 29
- Earlier in the year, Nike faced a slump in sales when retailers canceled orders and lockdowns kept people from its stores in key markets
- Nike’s shares have gained by about 30% this year and more than doubled since March’s low as it slashed costs through targeting online investments and cutting corporate jobs
- 2020 marks the 19th consecutive year that Nike has increased dividend payouts, after raising quarterly payments back in 2019 by 11%.
Nike stock is currently gaining. NKE: NYSE is up 0.90%
