Nike Raises Dividend and Announces 2-for-1 Stock Split
Nike Inc. (NYSE: NKE) is throwing up everything it can to help its share price now that the trajectory is no longer straight up. The company announced that it has approved a two-for-one split in the form of a 100% stock dividend. It is also boosting its dividend.
The dividend (split) will be an early Christmas present as it is payable on December 24, 2012 to shareholders of record at the close of business December 10, 2012. Nike expects its common stock to begin trading ex-split on December 26, 2012.
Nike has also declared a quarterly cash dividend on the Class A and Class B shares of $0.21 per share on a post-split basis. On a split-adjusted basis this will be a gain of 17% in Nike's dividend payout to holders. Today's dividend hike marks the eleventh year in a row the Company has increased its annual dividend. That dividend will be payable on December 26, 2012 to holders of record at the close of business on December 10, 2012.
Upon completion of the split, the outstanding shares of Class A and B shares will increase to approximately 178 million and 720 million, respectively.
Nike raised its share buyback plan in September to allow for a total of up to $8 billion for share repurchases. The company's market cap as of the close was $40.9 billion. Nike closed up 0.25% at $90.83 and shares are up 1% after the close; its 52-week trading range is $85.10 to $114.81.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Apparel, Dividends & Buybacks, Retail, Stock Buybacks, Stock Splits Tagged: featured, NKE