Nike Stock Higher as Dividend Rise Extends Payout Gains to 20 Years

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Nike Inc. (NKE) – Get the Class B report from NIKE, Inc. Shares rose on Friday after the world’s largest sportswear group raised its quarterly dividend by 11%, extending its streak of increased payouts to twenty straight years.

Nike announced it would pay a quarterly cash dividend of 30.5 cents per share, an increase of 3 cents from the previous payout, to shareholders of record on Dec. 6.

The payout follows a mixed first-quarter earnings report from Nike that included $12.2 billion in sales and net income of $1.16 per share, fueled by a rebound in China and extended revenue gains. in the USA.

However, Nike cut its full-year sales forecast to a “mid-single-digit” growth rate, from a previous estimate of double-digit gains, due to supply chain issues which it said. it affected the movement of goods from Asia to North America. .

“Nike continues to fuel growth through its Consumer Direct Acceleration strategy, while generating strong cash flow and increasing shareholder returns,” said CEO John Donahoe. “This is now our 20th consecutive year of increased dividend payouts, and reflects our strong balance sheet and confidence in our ability to deliver sustainable, profitable and efficient growth over the long term.”

Shares of Nike rose 0.6% in early trading on Friday to change hands at $172.04

Even with the muted outlook for the holiday quarter, Goldman analyst Kate McShane said Nike’s current supply issues are “transient”, noting last month that the stock’s recent pullback after the First quarter earnings day represents a buying opportunity based on a “healthy industry backdrop with a company-specific, continued focus on innovation to drive growth.”

Bank of America analyst Lorraine Hutchinson, however, recently noted that the supply chain issues are “not unique to Nike and we expect delivery delays across the sports ecosystem.”

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