January 11, 2026 a 12:46 pm
NKE: Dividend Analysis - NIKE, Inc.
🗣️ NIKE, Inc. presents a robust dividend profile with a substantial history spanning four decades. The consistency in their dividend payouts highlights a stable approach to shareholder returns. However, the high payout ratios might raise concerns about sustainability amidst fluctuating market conditions. Investors should weigh the dividend yield against potential growth and market volatility risks.
Overview 📊
NIKE, Inc. operates primarily in the consumer industry, focusing on durable goods. The current dividend yield stands at 2.46%, with an annual dividend per share of 1.55 USD. Notably, NIKE has a commendable 40-year history of uninterrupted dividends since 1991, showcasing its stability as an income-generating asset.
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Consumer Goods | 2.46% | 1.55 USD | 40 years | 1991 |
Dividend History 📈
The long-standing dividend policy underscores NIKE's commitment to returning capital to shareholders. Monitoring its history of payments is crucial to understanding potential future payouts.
| Year | Dividend per Share |
|---|---|
| 2025 | 1.61 USD |
| 2024 | 1.51 USD |
| 2023 | 1.39 USD |
| 2022 | 1.26 USD |
| 2021 | 1.13 USD |
Dividend Growth 📉
🗣️ Dividend growth is a pivotal facet as it affects stock performance and income potential. Over 3 years, NIKE's dividend growth averaged 8.66%, while the 5-year average was 9.77%, reflecting consistent enhancement in shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 8.66% |
| 5 years | 9.77% |
The average dividend growth is 9.77% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ✅
The payout ratio indicates the percentage of earnings distributed as dividends, serving as a sustainability indicator. NIKE's EPS-based payout ratio is 90.71%, while the free cash flow-based payout ratio is 92.49%, both relatively high, suggesting the dividends are well-pegged against earnings capacity.
| Key figure | Ratio |
|---|---|
| EPS-based | 90.71% |
| Free cash flow-based | 92.49% |
The high payout ratios warrant scrutiny, as they indicate a significant portion of earnings being paid out, potentially limiting reinvestment flexibility.
Cashflow & Capital Efficiency 💰
Analyzing cash flow metrics provides insight into a company's financial health and efficiency in capital utilization. NIKE maintains a free cash flow yield of 2.54%, with a CAPEX to operating cash flow ratio at 19.01%. The stock-based compensation remains low concerning revenue, underscoring disciplined financial management.
| Year | Free Cash Flow Yield | Earnings Yield | CAPEX to Operating Cash Flow | Stock-based Compensation to Revenue | Free Cash Flow / Operating Cash Flow Ratio |
|---|---|---|---|---|---|
| 2025 | 3.63% | 3.58% | 11.63% | 1.53% | 88.37% |
| 2024 | 4.59% | 3.95% | 10.93% | 1.57% | 89.07% |
| 2023 | 2.98% | 3.10% | 16.59% | 1.47% | 83.41% |
The steady free cash flow and efficient capital management enhance shareholder value and sustain robust dividend payouts.
Balance Sheet & Leverage Analysis 📈
🗣️ Examining the balance sheet metrics provides insights into leverage levels and financial resilience. NIKE's debt-to-equity ratio is recorded at 0.83, with a current ratio of 2.06, affirming strong liquidity positions and relatively moderate leverage.
| Year | Debt-to-Equity | Debt-to-Assets | Debt-to-Capital | Net Debt to EBITDA | Current Ratio | Quick Ratio | Financial Leverage |
|---|---|---|---|---|---|---|---|
| 2025 | 0.83 | 0.30 | 0.45 | 0.79 | 2.21 | 1.50 | 2.77 |
| 2024 | 0.83 | 0.31 | 0.45 | 0.29 | 2.40 | 1.69 | 2.64 |
| 2023 | 0.87 | 0.32 | 0.46 | 0.69 | 2.72 | 1.81 | 2.68 |
NIKE's prudent financial management is evident with a solid balance between debt and equity, promoting stable growth amid leverage strategies.
Fundamental Strength & Profitability
Checking fundamental performance markers, NIKE shows promising return metrics with a 2025 Return on Equity of 24.36% and a Return on Assets of 8.80%. This suggests effective capital utilization and solid profit generation.
| Year | Return on Equity | Return on Assets | Margins: Net | EBIT | EBITDA | Gross | R&D to Revenue |
|---|---|---|---|---|---|---|---|
| 2025 | 24.36% | 8.80% | 6.95% | 7.99% | 9.74% | 42.73% | 0% |
| 2024 | 39.50% | 14.96% | 11.10% | 12.29% | 13.93% | 44.56% | 0% |
| 2023 | 36.20% | 13.51% | 9.90% | 11.55% | 13.23% | 43.52% | 0% |
NIKE's robust profitability and efficient operation demonstrate superior operational effectiveness, fostering investor confidence.
Price Development
Dividend Scoring System 🏆
| Criteria | Rating | Score |
|---|---|---|
| Dividend Yield | 2.46% | |
| Dividend Stability | 40 years | |
| Dividend Growth | 9.77% (5Y) | |
| Payout Ratio | 90.71% | |
| Financial Stability | High | |
| Dividend Continuity | Since 1991 | |
| Cashflow Coverage | 8.84% | |
| Balance Sheet Quality | Strong |
Total Score: 39/40
Rating ⭐
🗣️ Overall, NIKE, Inc. showcases a solid dividend strategy, strong growth fundamentals, and stable financial health, earning a high commendation for those focusing on dividend security and moderate growth potential. While payouts are substantial, vigilance over payout ratios is advised to ensure sustainable investor returns.