Nike is one of the biggest and most recognizable brands in the world, and it is no surprise that many investors are interested in the company. But does Nike pay dividends? In this article, we will explore Nike’s dividend policy and the potential benefits of investing in the stock. We will look at the company’s financial performance, its dividend history, and the prospects of a dividend payout in the future.
Yes, Nike pays dividends to its shareholders. The company’s dividends have increased annually since its first dividend payout in 1984. It currently pays a quarterly dividend of $0.20 per share, equivalent to a yield of around 1.3%.
Does Nike Pay Dividends?
Yes, Nike does pay dividends to its shareholders. Nike is a global leader in athletic apparel and footwear and has been a publicly traded company since December 1980. The company has paid quarterly dividends since 1984 and has maintained a consistent dividend policy since then.
Dividend Payment History
Nike pays out dividends on a quarterly basis. The company has a long history of regularly paying out dividends, with the current dividend yield of 0.61%. In 2020, the company paid out a total of $1.20 per share, with the most recent dividend payment of $0.30 per share taking place in December 2020.
Dividend Growth
Nike has maintained a consistent dividend policy since 1984, and over the past five years, the company has increased its dividend payments by an average of 10.2% annually. The company is committed to returning value to its shareholders and has stated that it plans to continue its dividend growth in the future.
Dividend Reinvestment Plan
Nike also offers a dividend reinvestment plan for shareholders who wish to reinvest their dividends rather than receive them in cash. This program allows shareholders to purchase additional shares of Nike stock at a 5% discount.
Summary
In summary, Nike has a long history of paying regular quarterly dividends to its shareholders, with a current dividend yield of 0.61%. The company has also increased its dividend payments by an average of 10.2% annually over the past five years and offers a dividend reinvestment plan for shareholders who wish to reinvest their dividends rather than receive them in cash.
Top 6 Frequently Asked Questions
Question 1: Does Nike Pay Dividends?
Answer: Yes, Nike does pay dividends. The company has paid a dividend since 1984 and has increased its dividend every year since then. The current annual dividend rate is 0.49 per share, and the company has paid out a total of over $2.2 billion in dividends over the past five years. Nike has a dividend yield of 1.31%, which is slightly lower than the average for the S&P 500.
Question 2: When Does Nike Pay its Dividend?
Answer: Nike typically pays its dividend quarterly, with the payment dates falling in March, June, September, and December. The record date for the payment is typically the last business day of the month prior to the payment date. For example, the record date for the June dividend payment is usually the last business day in May.
Question 3: What Type of Dividend Does Nike Pay?
Answer: Nike pays a cash dividend. This means that shareholders who own Nike stock on the record date will receive cash payments directly from the company. The actual cash payment is based on the number of shares owned on the record date.
Question 4: How Can I Receive My Dividends?
Answer: You can receive your dividend payments in two ways. If you own Nike stock through a broker, then you will typically receive your dividend payments directly from the broker. Alternatively, if you hold your Nike stock in a self-directed brokerage account, you can choose to have the dividend payments deposited directly into your bank account.
Question 5: What is the Dividend Payout Ratio for Nike?
Answer: Nike’s dividend payout ratio is currently at about 30%. This means that for every $1 of earnings, the company pays out 30 cents in dividends. The company’s dividend payout ratio has been steadily increasing over the past several years, as the company has increased its dividend payments in line with its increasing earnings.
Question 6: Does Nike Have a Dividend Reinvestment Plan (DRIP)?
Answer: Yes, Nike does have a dividend reinvestment plan (DRIP). This plan allows shareholders to automatically reinvest their dividends into additional shares of Nike stock. With the DRIP, shareholders can purchase additional shares of Nike stock at a discounted commission rate. The plan also offers a dividend reinvestment discount of up to 10%.
In conclusion, Nike does pay dividends to its shareholders, rewarding them for their long-term investment in the company. Nike’s dividend payout ratio is consistently high, which is a sign of a healthy company. As a result, investors can have confidence that their dividend payments will be safe, and that Nike will continue to be a strong and reliable investment in the years ahead.
