Hey Nike, Why Don't You Just Buy Deckers Outdoors?
Another upside performer was a company whose shoes I wear almost every day. Nike (NKE) rallied over 4% to close at $96.32. Oh happy day!
Even though I don't own shares of NKE, I'm happy for the Nike shareholders who will experience the benefits of an important announcement the company made on Nov. 15: The 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% stock dividend payable on Dec. 24 to shareholders of record at the close of business Dec. 10. That means it's not too late for you and me to participate, even though it's 10 days before NKE announces its results from its last quarter on Dec. 20.
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.
There's more good news for NKE shareholders: The Board of Directors also 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 to shareholders of record at the close of business on Dec. 10.
The dividend represents a 17% increase over the previous split-adjusted quarterly rate of 18 cents per share. This is the eleventh year in a row Nike 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 its CEO, Mark Parker.