NIKE, Inc. (NYSE:NKE) Declares $0.41 Quarterly Dividend

Key Points

• NIKE declared a quarterly dividend of $0.41 per share, payable October 1 to shareholders of record on September 1. The dividend implies an annualized payout of $1.64 and a 3.9% yield.
• NIKE has increased its dividend for 22 consecutive years, with a current payout ratio of 63.3%; analysts expect earnings to cover the dividend next year as well.
• The stock opened at $41.91, near its 12-month low, while analyst sentiment remains mixed with an overall “Hold” rating and an average price target of $53.53. Recent earnings beat expectations, but revenue declined 1.1% year over year.

NIKE, Inc. (NYSE:NKE - Get Free Report) declared a quarterly dividend on Thursday, August 6th. Shareholders of record on Tuesday, September 1st will be paid a dividend of 0.41 per share by the footwear maker on Thursday, October 1st. This represents a c) annualized dividend and a yield of 3.9%. The ex-dividend date is Tuesday, September 1st.

NIKE has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 22 years. NIKE has a payout ratio of 63.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect NIKE to earn $2.35 per share next year, which means the company should continue to be able to cover its $1.64 annual dividend with an expected future payout ratio of 69.8%.

NIKE Stock Performance

NKE stock opened at $41.91 on Friday. NIKE has a twelve month low of $40.00 and a twelve month high of $80.17. The firm has a market cap of $62.18 billion, a price-to-earnings ratio of 20.05, a PEG ratio of 1.88 and a beta of 1.11. The business's fifty day simple moving average is $43.28 and its two-hundred day simple moving average is $49.61. The company has a quick ratio of 1.36, a current ratio of 1.96 and a debt-to-equity ratio of 0.40.

NIKE (NYSE:NKE - Get Free Report) last issued its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. The firm had revenue of $10.97 billion during the quarter, compared to analyst estimates of $10.85 billion. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The business's revenue was down 1.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.14 earnings per share. Analysts predict that NIKE will post 1.74 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on NKE. Jefferies Financial Group lowered their price target on NIKE from $90.00 to $75.00 and set a "buy" rating for the company in a report on Wednesday, July 1st. The Goldman Sachs Group decreased their price objective on NIKE from $46.00 to $42.00 and set a "neutral" rating for the company in a report on Wednesday, July 1st. Oppenheimer cut their target price on shares of NIKE from $120.00 to $60.00 and set an "outperform" rating on the stock in a research report on Friday, June 26th. Piper Sandler lowered their price target on shares of NIKE from $50.00 to $45.00 and set a "neutral" rating for the company in a research report on Wednesday, July 1st. Finally, Argus raised shares of NIKE to a "strong-buy" rating in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, eighteen have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, NIKE has an average rating of "Hold" and an average price target of $53.53.

NIKE Company Profile

Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.

The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).

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