// Nike to increase its dividend payout for the 19th year in a row
// The dividend payout is increasing by 12%, or 3 cents per share, to $0.275 per share
Nike has revealed it plans a double-digit increase in its quarterly dividend as it forecasts a sales bounce due to the Covid-19 pandemic.
The sportswear giant, which is in the process of a transformation scheme that will see it become more of a direct-to-consumer retailer through its own websites and stores rather than as a wholesaler, said it would increase its dividend pay out by 12 per cent – or 3 cents per share.
It marks Nike’s 19th consecutive year of increasing dividend payouts, and comes as many retailers either cut or pause shareholder payouts due to Covid-19 crisis.
READ MORE: Nike closer to a permanent shift to online as first quarter sales surge
A cash dividend of $0.275 per share on Nike’s outstanding class A and class B stock is payable on December 29.
In September, Nike said it expects sales in its second half ending May next year to be “up significantly”, as it bounces back from a slump earlier this year due to Covid-19 lockdowns in multiple markets.
Nike’s shares have also more than doubled since its March low as it slashed costs by cutting corporate jobs and targeted online investments as part of its transformation scheme.
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