Nike Inc has recently announced a 12% increase in its quarterly dividend, equivalent to an additional 3 cents per share. This decision showcases the company’s strong financial status, even amidst the ongoing Covid-19 pandemic. Despite facing challenges, Nike’s sales are projected to recover in the second half of its fiscal year, ending in May 2021. Earlier this year, the company encountered a decline in sales due to canceled orders from retailers and lockdown measures in key markets.

An interesting aspect to note is that despite the pandemic, Nike’s share price has experienced significant growth, witnessing a rise of about 30% since the start of the year. This upward trend in stock prices can be attributed to the company’s introduction of cost-cutting measures, such as job cuts in corporate positions, as well as strategic investments in online platforms.

The dividend increase of $0.275 per share will be disbursed to Nike’s outstanding class A and class B stockholders on December 29, 2020. Notably, this marks the 19th consecutive year that the company has augmented its dividend payouts, following an 11% increase in quarterly payments in 2019. It is worth mentioning that this decision stands out in the current business landscape, as numerous companies have opted to either decrease or suspend their shareholder returns due to the adverse effects of the virus outbreak.

Additional information:

1. For more details on Nike’s financial performance during the pandemic: Nike Investor Relations.
2. For insights into Nike’s strategy and investments in online platforms: Nike Official Website.