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Nike Stock Edges Higher As Dividend Boost Extends Payout Gains To 20 Years

Nike extended its run of divided increases to 20 years with an 11% boost to its first quarter dividend.

Nike Inc.  (NKE) - Get NIKE, Inc. Class B Report shares bumped higher Friday after the world's biggest sports apparel group boosted its quarterly dividend by 11%, extending its run of increased payouts to twenty consecutive years.

Nike said it will pay a quarterly cash dividend of 30.5 cents per share, a 3 cent increase from the prior payout, to shareholders of record on December 6. 

The payout followed a mixed first quarter earnings report from Nike that included $12.2 billion in sales and a bottom line of $1.16 per share, powered by a rebound in China and extended gains in U.S. revenues.

However, Nike cut its full-year sales forecast to a "mid-single digit" growth rate, from a previous estimate of double-digit gains, owing to supply chain issues that it said were impacting the movement of goods from Asia to north America.

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“Nike continues to fuel growth through our Consumer Direct Acceleration strategy, while generating strong cash flow and increasing returns to shareholders,” said CEO John Donahoe. “This is now our 20th consecutive year of increasing dividend payouts, and reflects our strong track record and confidence in our ability to deliver sustainable, profitable, capital-efficient growth over the long-term.”  

Nike shares were marked 0.6% higher in early trading Friday to change hands at $172.04

Even with the muted holiday-quarter outlook, Goldman analyst Kate McShane said Nike's current sourcing issues are "transitory", noting last month that the stock's recent pullback following its first quarter earnings update represents a buying opportunity based on a "healthy industry backdrop with a company-specific, continued focus on innovation to drive growth."

Bank of America analysts Lorraine Hutchinson, however, noted recently that supply chain issues are "not unique to Nike and we expect delayed deliveries across the entire athletic ecosystem".