Nike (NYSE: NKE) may be making ready to challenge a optimistic earnings report in only a few weeks. The sports activities attire and footwear titan on Friday introduced a hike to its dividend forward of its fiscal second-quarter outcomes due out on Dec. 18.
Nike raised its payout by 12% to $0.275 per share, which pushed it to $1.10 per share yearly, up from $0.62 per share again in 2016.
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The enhance slot in with latest hikes by the administration crew though this previous 12 months has been something however regular. Nike raised its dividend by 11% final 12 months and by 10% within the earlier 12 months. This newest hike got here following a uncommon revenue stoop in fiscal 2020 on account of COVID-19 retailing closures (Nike’s fiscal 12 months ends in late May).
The transfer would possibly preview wholesome earnings outcomes for the fiscal second quarter on Dec. 18. Nike reported rebounding gross sales traits in each the U.S. and Chinese language markets at its final outing and certain returned to stable development in every geography over the previous few months.
In the meantime, administration paused its stock repurchase spending at first of the pandemic, however enhancing working traits may need allowed that program to restart, too. Buyers will study executives’ plans for that cash return channel within the upcoming earnings report.
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Demitri Kalogeropoulos owns shares of Nike. The Fintech Zoom owns shares of and recommends Nike. The Fintech Zoom has a disclosure coverage.
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