Nike (NKE) DIvidends Date & History

Key Takeaways

• Nike pays a quarterly dividend of $0.41 per share, equating to an annual payout of $1.64 and a current yield of 3.69%.
• The company has raised its dividend for 24 consecutive years, with a 1-year growth rate of 5.19%.
• Payout ratio stands at approximately 107%, indicating the dividend exceeds current earnings but is supported by free cash flow.
• Nike's yield significantly outpaces footwear peers like Adidas (ADDYY) at around 1.4% and non-payers such as Under Armour (UA) and Deckers (DECK).
• Recent ex-dividend date was March 2, 2026, with payment on April 1, 2026.
• Free cash flow remains positive at $1.31 billion (TTM), providing some coverage despite recent declines.

Dividend Overview

Nike (NKE) maintains a consistent quarterly dividend policy, distributing $0.41 per share, which annualizes to $1.64. This delivers a forward yield of 3.69%, elevated due to recent stock price pressures. Payments occur every three months, with the most recent declaration in February 2026 for the March ex-date. Nike qualifies as a dividend growth stock, having incrementally raised payouts amid its focus on brand strength and global expansion. While not a high-yield play in the traditional sense, its current yield positions it attractively for income seekers, though sustainability warrants monitoring given payout metrics.

Dividend History and Growth

Nike has a robust history of dividend payments, with quarterly distributions since the early 1980s and steady increases over decades. The company boasts 24 consecutive years of dividend growth, nearing Dividend Aristocrat status (25 years). Recent hikes include a 2.5% rise to $0.41 in late 2025, following a 5.19% annual growth rate. No cuts have occurred in modern history, reflecting a long-term strategy prioritizing shareholder returns alongside reinvestment in innovation and marketing. This consistency underscores Nike's financial discipline in the competitive footwear sector.

Dividend Sustainability and Payout Ratio

Nike's payout ratio of 106.8-107% signals the dividend consumes more than earnings, raising caution flags. However, trailing twelve-month levered free cash flow (FCF) of $1.31 billion offers partial coverage for annual dividends around $2.4 billion (based on shares outstanding). Debt-to-equity stands at 57%, manageable with $14.1 billion in equity. Recent fiscal challenges, including revenue declines and FCF reduction to $3.27 billion in FY2025, pressure sustainability, but positive cash generation and no dividend cuts suggest commitment. Earnings recovery will be key for long-term viability.

Dividend Compared to Industry Peers

Nike's 3.69% yield towers over the footwear and apparel sector, where the average hovers around 1-2%. Primary rival Adidas (ADDYY) yields about 1.4-1.9%, with annual payments. Many peers, including Under Armour (UA), Deckers (DECK), Skechers (SKX), and Crocs (CROX), pay no dividends, prioritizing growth. Nike's profile stands out for income-oriented investors in this growth-heavy industry.

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Is This Stock Attractive for Dividend Investors?

Nike (NKE) appeals to dividend growth investors valuing its 24-year streak and quarterly payouts, particularly with a yield elevated to 3.69% from stock declines. Those seeking higher income may find the current rate compelling relative to peers, though the payout ratio above 100% suits risk-tolerant profiles comfortable with temporary earnings gaps covered by FCF. Conservative investors might hesitate amid recent revenue softness and competition, preferring lower ratios. Long-term holders could benefit from Nike's brand moat and potential turnaround, but volatility in consumer discretionary warrants diversification. Balanced portfolios blending growth and income may accommodate NKE as a core holding, pending improved coverage metrics.

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