Nike, Inc.'s board of directors approved a two-for-one split of both Nike Class A and Class B Common shares.
The stock split will be in the form of a 100 percent stock dividend payable on Dec. 24, to shareholders of record at the close of business December 10.
Upon completion of the split, the outstanding shares of Nike Class A and Class B common stock will increase to approximately 178 million and 720 million, respectively. The company expects its common stock to begin trading at the split-adjusted price on Dec. 26.
In addition, the Board of Directors declared a quarterly cash dividend on the company’s outstanding Class A and Class B Common Stock of 21 cents per share, on a post-split basis, payable on Dec. 26, 2012 to shareholders of record at the close of business on Dec. 10, 2012. The dividend represents a 17 percent increase over the previous split-adjusted quarterly rate of 18 cents per share. This is the eleventh year in a row the company has increased its annual dividend, over which time the dividend has increased by a factor of almost seven.
“Nike has a consistent track record of delivering value to our shareholders,” said Mark Parker, president and CEO of Nike, Inc., in a statement. “Over the last eleven years the Company has returned over $14 billion to shareholders through dividend payments and share repurchases. Today’s increase, together with the four-year, $8 billion share repurchase program announced in September, reflects our commitment to delivering value for our shareholders and the ongoing confidence we have in our strategy to generate long-term profitable growth and strong cash flows. I’ve never been more confident and excited about our future growth opportunities.”
