Nike (NKE) DIvidends Date & History

Key Takeaways

• Nike pays a quarterly dividend of $0.41 per share, equal to $1.64 annually, after a 2.5% increase announced in November 2025.
• The dividend yield is roughly 2.7% at recent price levels, well above the Consumer Cyclical sector average of about 1.12%.
• Nike has raised its dividend for 24 consecutive years, making it a reliable dividend growth story.
• The payout ratio has risen to the mid-60% range on a trailing basis as earnings (net income) have softened, warranting close monitoring.
• The most recent ex-dividend date was December 1, 2025, with payment made on January 2, 2026.

Dividend Overview

Nike, Inc. (NKE), the world's largest athletic footwear and apparel company, is a well-established dividend payer within the consumer discretionary sector. The company distributes a cash dividend every quarter, currently $0.41 per share, for an annualized total of $1.64 per share. At recent trading levels, this translates to a dividend yield of approximately 2.7%, which is notably higher than the broader Consumer Cyclical sector average.

Nike is best characterized as a dividend growth stock rather than a high-yield stock. Its yield is moderate, but its long and unbroken record of annual increases gives it strong appeal to investors seeking steadily rising income over time. The dividend is paid four times per year, aligning with a typical quarterly cadence in the United States.

Dividend History and Growth

Nike has a long and dependable dividend history. In November 2025, the company declared a quarterly dividend of $0.41 per share, up 2.5% from the prior $0.40, marking its 24th consecutive year of dividend increases. Over the past decade, the annual dividend has grown from roughly $0.48 per share in 2014 to $1.64 today, representing a compound annual growth rate (CAGR, the average yearly growth rate) in the low double digits for much of that period.

Recent increases have moderated, reflecting a more conservative approach as the company navigates a challenging consumer environment. However, Nike has never cut its dividend during this stretch, and management has signaled a continued commitment to returning capital to shareholders through both dividends and share buybacks.

Dividend Sustainability and Payout Ratio

The sustainability of Nike's dividend rests on its earnings and cash generation. The payout ratio — the share of earnings paid out as dividends — has climbed to roughly 65% on a trailing twelve-month (TTM, the most recent twelve-month period) basis as Nike's net income has declined amid softer sales and restructuring efforts. In some recent quarters, the payout ratio has exceeded 100% of quarterly earnings, underscoring short-term pressure.

That said, Nike's free cash flow (FCF), or cash remaining after capital spending, has historically covered the dividend more comfortably, with the FCF payout ratio running in the 30% to 40% range in most years. A strong balance sheet and ample liquidity further support the payout. While the elevated earnings-based payout ratio warrants attention, Nike's cash-flow position suggests the dividend remains financially supportable.

Dividend Compared to Industry Peers

Within the athletic apparel and footwear space, Nike's dividend profile stands out. Many direct competitors, including Lululemon Athletica (LULU) and Under Armour (UAA), do not currently pay a dividend, while Deckers Outdoor (DECK) similarly returns capital primarily through buybacks. Adidas (ADDYY) pays a modest dividend, but its yield has historically been lower than Nike's.

As a result, Nike's roughly 2.7% yield is relatively high for its peer group and comfortably above the Consumer Cyclical sector average of about 1.12%. This makes Nike one of the more income-oriented options available among large-cap athletic brands, even though its yield remains modest compared with traditional high-yield sectors such as utilities or consumer staples.

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Is This Stock Attractive for Dividend Investors?

Nike may appeal most to long-term dividend growth investors who value consistency and a track record of rising payouts over maximum current income. The company's 24-year streak of increases, strong brand, and healthy free cash flow make it a candidate for investors building a growing income stream over many years.

The roughly 2.7% yield is modest relative to high-yield alternatives, so Nike is less suited to investors seeking immediate, substantial income. Additionally, the recent rise in the earnings-based payout ratio and ongoing business challenges introduce an element of caution; dividend growth may be slower in the near term than in the past. Conservative income investors may prefer companies with more stable earnings, while total-return-focused investors may find Nike's blend of income and growth potential appealing. As always, individual circumstances and risk tolerance should guide any decision.

Disclaimer

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