Shares of Nike, Inc. ($NKE) climbed nearly 2% on Friday, defying a broader market slump, boosted by two key catalysts.
The sportswear giant announced a dividend increase on Thursday, raising its quarterly payout to $0.40 per share from $0.37.
This new annualized dividend of $1.60 per share will be payable on Jan. 2 next year to shareholders on record as of Dec. 2, representing a 1.5% yield based on Thursday’s closing price of $75.68.
This marks Nike’s 23rd consecutive year of dividend hikes, the company said.
Adding to the bullish sentiment, billionaire investor Bill Ackman significantly raised his stake in Nike.
His hedge fund, Pershing Square Capital, increased its holdings in Nike by 440% in the third quarter, bringing the total to 16 million shares valued at approximately $1.4 billion.
Ackman’s fund, which manages around $13 billion in assets, is known for its concentrated bets, with fewer than 10 positions in its portfolio.
Retail interest in Nike surged on Stocktwits following the news, pushing its ticker into the top 20 trending symbols as of Friday afternoon.
Sentiment was ‘extremely bullish’, with one user predicting the stock could touch $80 soon, and another targeting $90 ahead of its next earnings report in December.
However, Nike’s stock has been under pressure throughout 2024, losing over 25% year-to-date.
The company recently appointed a three-decade veteran as its new CEO to spearhead a turnaround strategy.
Still, Nike’s management remains cautious. During its most recent earnings call, CFO Matthew Friend admitted the company has “yet to turn the corner” and opted to withdraw its full-year guidance, focusing on quarterly forecasts instead.
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