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NikeNike, Inc. (NKE) is maintaining its quarterly dividend despite persisting weakness in its business and shares.
On Thursday, the company announced a dividend of $0.40, to be paid out on July 1. Nike has paid dividends to shareholders for over 20 years and has paid that amount since December 2024.
That totals an annual dividend of $1.60 per share. Nike paid out $6.4 billion in dividends last fiscal year.
In uncertain business environments, dividend-paying stocks hold a broad appeal.
The move is also an effort for Nike to keep investors interested in its stock, which is trading around a five-year low.
The iconic sports apparel and accessories brand has struggled in recent years due to a miscalculated shift away from multi-brand retailers and rising competition from emerging brands.
In October, Nike brought back veteran Elliott Hill as its CEO, and he has since led a series of changes as part of a broad turnaround plan.
Hill has said Nike will fix its relationships with retailers, refocus on its traditionally core areas like basketball and running, and sell more premium products.
In March, Nike reported quarterly earnings and gave a weak outlook, partially weighed by the impact of new U.S. trade tariffs.
On Stocktwits, the retail sentiment was 'bearish' and the message volume 'low.'
A user said Nike’s prospects were already dire before the new management took over, and the stock could go down to around $40 by the middle of the year.
On Thursday, Wells Fargo downgraded Nike's rating to 'Equal Weight' from 'Overweight' and slashed the price target to $55 from $75, citing macroeconomic uncertainty clouding its business.
Nike stock is down 25% year to date.
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