June 01, 2025 a 03:31 pm
NKE: Dividend Analysis - NIKE, Inc.
NIKE, Inc. demonstrates a solid dividend profile backed by a robust market cap and a strong history of dividend payments. With over 40 years of consecutive dividend payouts and a current dividend yield of approximately 2.59%, Nike continues to appeal to income-focused investors. The stable dividend policy, coupled with steady growth rates, enhances Nike's attractiveness as a dividend stock despite market fluctuations.
📊 Overview
NIKE operates within the consumer discretionary sector, where it has established itself as a powerhouse with a resilient dividend profile. Here, we highlight key metrics:
| Key Metric | Value |
|---|---|
| Sector | Consumer Discretionary |
| Dividend Yield | 2.59% |
| Current Dividend Per Share | 1.43 USD |
| Dividend History | 40 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Nike's dividend history stands out with an impressive track record of uninterrupted payouts for 40 years. Such a record indicates a strong commitment to returning capital to shareholders and suggests financial stability.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.80 |
| 2024 | 1.51 |
| 2023 | 1.39 |
| 2022 | 1.255 |
| 2021 | 1.130 |
📈 Dividend Growth
Nike's consistent dividend growth is a key driver of shareholder value. This growth reflects the company's financial health and commitment to rewarding investors over time.
| Time | Growth |
|---|---|
| 3 years | 10.15% |
| 5 years | 10.78% |
The average dividend growth is 10.78% over 5 years. This shows moderate but steady dividend growth, reinforcing the stability and potential income growth from holding Nike shares.
📉 Payout Ratio
Nike's payout ratios are critical to understanding how comfortably the company can cover its dividend using its profits and cash flows.
| Key Figure | Ratio |
|---|---|
| EPS-based | 47.16% |
| Free cash flow-based | 39.72% |
With an EPS-based payout ratio of 47.16% and a free cash flow-based ratio of 39.72%, Nike maintains a prudent approach, ensuring dividends are well-covered. This suggests room for future dividend growth.
🧮 Cashflow & Capital Efficiency
Analyzing cash flow and capital efficiency provides insights into Nike's operational effectiveness and ability to sustain dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.59% | 2.98% | 2.36% |
| Earnings Yield | 4.00% | 3.10% | 3.22% |
| CAPEX to Operating Cash Flow | 9.28% | 16.59% | 14.61% |
| Stock-based Compensation to Revenue | 1.53% | 1.47% | 1.36% |
| Free Cash Flow / Operating Cash Flow Ratio | 89.07% | 83.41% | 85.39% |
| Return on Invested Capital | 19.63% | 14.40% | 17.38% |
High free cash flow yields and efficient capital deployment indicate strong cash-generating capabilities, supporting future growth and sustained dividend payments.
🏦 Balance Sheet & Leverage Analysis
Reviewing Nike's balance sheet and leverage ratios reveals its financial flexibility and risk profile.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.83 | 0.87 | 0.83 |
| Debt-to-Assets | 31.36% | 32.36% | 31.32% |
| Debt-to-Capital | 45.30% | 46.44% | 45.25% |
| Net Debt to EBITDA | 0.69 | 0.69 | 0.54 |
| Current Ratio | 2.19 | 2.72 | 2.63 |
| Quick Ratio | 1.69 | 1.81 | 1.84 |
| Financial Leverage | 2.64 | 2.68 | 2.64 |
Nike's balance sheet showcases a well-managed leverage structure, promoting long-term stability with comfortable coverage ratios and liquidity measures.
💪 Fundamental Strength & Profitability
Examining the fundamental strength and profitability highlights Nike's operational efficiency and market position.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 39.50% | 36.20% | 39.57% |
| Return on Assets | 14.96% | 13.51% | 14.99% |
| Net Margin | 11.10% | 9.90% | 12.94% |
| EBIT Margin | 12.29% | 11.55% | 14.29% |
| EBITDA Margin | 13.93% | 13.23% | 16.09% |
| Gross Margin | 44.56% | 43.52% | 45.98% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
With high returns on equity and assets, alongside strong margins, Nike's profitability mirrors its leading brand and operational acumen.
📈 Price Development
🎯 Dividend Scoring System
| Category | Score | Rating |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
⭐ Rating
Nike’s dividend profile is robust, offering stability and solid growth prospects. This makes NIKE, Inc. an attractive option for investors prioritizing consistent income, growth potential, and financial resilience. However, continued monitoring of cash flow consistency and payout sustainability is advisable to preserve its dividend reputation.
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