Nike shares jump on plans for dividend boost, stock split
Nike Inc.'s shares jumped Friday, a day after announcing that its board approved a 14 percent dividend increase, a 2-for-1 stock split and authorized a stock buyback of up to $12 billion over four years.
Shares of the athletic footwear and apparel company rose almost 5 percent in morning trading.
The dividend increase to 32 cents from 28 cents is payable Jan. 4 to shareholders of record as of Dec. 9. This marks the fourteenth year in a row that the company has increased its dividend.
The 2-for-1 stock split will be in the form of a dividend payable Dec. 23 to shareholders of record as of Dec. 9.
"Moving forward, we see even greater potential for Nike as we continue to unlock new markets, new experiences and new product," CEO and President Mark Parker said in a statement late Thursday.
The Beaverton-based company said the new four-year buyback plan will begin once the previous $8 billion buyback plan is completed around the end of fiscal 2016.
Last week, the company said it wants to reach $50 billion in annual revenue within five years. The company reported $30.6 billion in revenue in fiscal 2015 and its revenue has grown 10 percent per year for the last two years.
Nike shares rose $6.01, or 4.8 percent, to $131.79 in morning trading Friday. Its shares have risen 37 percent so far this year.