Nike boosted its quarterly cash dividend by 12% to $0.275 per share from $0.245. The athletic apparel and footwear company’s new dividend will be paid on Dec. 29 to shareholders of record as on Dec. 7.
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Nike’s (NKE) new quarterly dividend translates into an annual dividend of $1.1 per share and now reflects a dividend yield of 0.83%. This marks the company’s 19th consecutive year of dividend hikes. Its CEO John Donahoe said “This dividend increase reflects NIKE’s financial strength and strong track record of returning capital to shareholders while continuing to invest in capabilities that will accelerate our digital transformation and fuel long-term profitable growth.”
In September, Nike delivered upbeat 1Q earnings of $0.95 per share, compared with the Street’s estimates of $0.47. Revenues generated $10.6 billion in the first quarter ending Aug. 31 and surpassed analysts’ expectations of $9.1 billion. (See NKE stock analysis on TipRanks)
On Nov. 12, RBC Capital analyst Kate Fitzsimons initiated coverage on the stock with a Buy rating and a price target of $145 (9% upside potential). The analyst believes that the stock can keep hitting new all-time highs as the company is a “best-in-class global athletic play,” aided by its direct-to-consumer and strong digital business.
Like Fitzsimons, most of the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 24 Buys and 2 Holds. The average price target stands at $145.92 and implies upside potential of about 9.7% to current levels. Shares have risen by about 31.3% year-to-date.
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