Nike share prices jumps as sportswear giant announces $12bn share buyback programme and dividend increase
Nike's share price opened five per cent higher on the New York Stock Exchange today after the sportswear titan announced it would be hiking its dividend by 14 per cent.
Investors, also cheered by a $12bn (£7.9bn) share buyback programme and a two-for-one stock split, reacted with gusto to the new 32 cents per share dividend and sent its stock as high as $132 per share.
The share buyback programme will commence after its current $8bn repurchase programme wraps up in May.
Nike's shares have risen 36 per cent so far this year – making it the best-performing stock on the Dow Jones Industrial Average this year – thanks to strong earnings and revenue.
In the first quarter, it recorded net income of $1.2bn and said it expects revenue to increase by 63 per cent to $50bn by the end of 2020.
Read more: Nike named the most valuable sport business in the world
In a statement, Nike chief executive Mark Parker said:
In a growing sports industry, Nike is the clear leader. We are built for growth, while also staying committed to creating shareholder value over the long term.
We've proven it time and time again, having returned over $23bn to shareholders over the last 14 years through share repurchases and dividends.