Nike Announces Its 7th 2-For-1 Split In 25 Years, Additional Cash Returns to Shareholders
Shares of Nike Inc (NYSE: NKE) gained more than 4 percent Friday morning.
Nike's Board of Directors announced a 2-for-1 stock split, a new $12 billion share repurchase program, and a 14 percent increase in its quarterly dividend.
Nike's upcoming split will mark the seventh time it has done so.
Nike's stock has risen by more than 30 percent over the past 52 weeks as the company continues to impress investors with solid growth and encouraging outlook.
Investors have another reason to feel confident in their Nike investment. The company several shareholder friendly initiatives, including: 1) a new four-year, $12 billion share buyback program, 2) a 14 percent increase in the company's quarterly, and 3) a 2-for-1 stock split.
Buyback Program
Nike's Board of Directors authorized a new $12 billion share buyback program will replace its already existing $8 billion authorization which is expected to be completed before the end of fiscal 2016. The new program is expected to becoming upon completion of the current program.
Nike said that it held approximately 678 million shares of Class B common stock outstanding as of November 16.
Related Link: Morgan Stanley Calls Nike's Analyst Day 'Very Bullish,' Maintained As Top Pick
Cash Dividend
Nike's Board approved a 14 percent increase to the company's quarterly dividend payment on outstanding Class A and Class B stock to $0.32 per share (on a pre-split basis). The new dividend will be payable on January 4, 2016 and marks the 14th consecutive year in a row that the company has increased its annual dividend rate.
Nike's of $0.005 per share was payable to shareholders on December 20, 1985.
Stock Split
Finally, Nike's Board approved a 2-for-1 split of both Class A and Class B shares – the seventh time it has done so in its history.
Upon completion of the split, Nike's outstanding Class A shares will increase to approximately 353 million while its Class B shares will increase to approximately 1.36 billion. The issues are expected to begin trading at the split-adjusted price on December 24, 2015.
Nike's was payable to investors on January 5, 1983. The most recent stock split occurred in December 2012.
Image credit: , Flickr
See more from Benzinga
Tim Cook Hints At New Medical Products, Says Apple Watch Saved High School Senior's Life
The Grinch Could Steal Christmas For Investors, Experts Warn
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
