May 01, 2026 a 12:46 pm
NKE: Dividend Analysis - NIKE, Inc.
NIKE, Inc. has a prominent position in the stock market with a current dividend yield of 2.66% and a longstanding history of 41 years without any recent dividend cuts or suspensions. Despite a high payout ratio, the company's financial metrics suggest potential for stable albeit cautious investment in dividends.
📊 Overview
NIKE, Inc. stands as a major player within its sector, displaying a solid dividend profile. The company's dividend yield is fairly attractive, accompanied by a significant historical commitment to shareholders.
| Parameter | Details |
|---|---|
| Sector | Consumer Discretionary |
| Dividend Yield | 2.66% |
| Current dividend per share | 1.55 USD |
| Dividend history | 41 years |
| Last cut or suspension | None |
📈 Dividend History
Investors value NIKE for its reliable dividend history. Consistent payouts demonstrate the company's commitment to returning value to its shareholders, enhancing its appeal as a stable investment choice.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 0.41 |
| 2025 | 1.61 |
| 2024 | 1.51 |
| 2023 | 1.39 |
| 2022 | 1.255 |
📊 Dividend Growth
Observing the growth patterns in dividends is crucial for forecasting long-term income potential. NIKE's consistent growth underscores its robust dividend policy.
| 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 provides insight into a firm’s earnings sustainability regarding dividends. It is vital to assess its capability to meet dividend obligations without risking operational stability.
| Key figure | Ratio |
|---|---|
| EPS-based | 101.81% |
| Free cash flow-based | 218.50% |
Both the payout ratios, EPS (101.81%) and FCF (218.50%), indicate high payout levels which might stress future dividend stability unless offset by growth in earnings or cash flow.
💵 Cashflow & Capital Efficiency
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 2.98% | 4.58% | 3.63% |
| Earnings Yield | 3.10% | 3.95% | 3.58% |
| CAPEX to Operating Cash Flow | 38.13% | 10.93% | 11.63% |
| Stock-based Compensation to Revenue | 1.47% | 1.56% | 1.53% |
| Free Cash Flow / Operating Cash Flow Ratio | 83.41% | 89.07% | 88.37% |
NIKE's strong cash flows relative to its capital expenditures indicate efficient capital allocation, ensuring sustainability of its dividend policy.
🏦 Balance Sheet & Leverage Analysis
This section examines NIKE's debt and liquidity position, ensuring it remains financially robust to weather economic challenges.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 86.72% | 82.83% | 83.39% |
| Debt-to-Assets | 32.36% | 31.36% | 30.12% |
| Debt-to-Capital | 46.44% | 45.30% | 45.47% |
| Net Debt to EBITDA | 69.43% | 29.24% | 78.80% |
| Current Ratio | 2.72 | 2.40 | 2.21 |
| Quick Ratio | 1.81 | 1.69 | 1.50 |
| Financial Leverage | 2.68 | 2.64 | 2.77 |
NIKE's balanced debt metrics and robust liquidity ratios highlight its ability to manage leverage efficiently, thus supporting its long-term financial health.
📊 Fundamental Strength & Profitability
Assessing profitability and fundamental strengths is key to evaluating the viability of sustained dividends and potential growth prospects.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 36.20% | 39.50% | 24.36% |
| Return on Assets | 13.51% | 14.96% | 8.80% |
| Net Margin | 9.90% | 11.10% | 6.95% |
| EBIT Margin | 11.55% | 12.29% | 7.99% |
| EBITDA Margin | 13.23% | 13.93% | 9.74% |
| Gross Margin | 43.52% | 44.56% | 42.73% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
The data suggest robust profitability with superior returns on capital and margins, underpinning NIKE's potential to sustain dividend programs.
📈 Price Development
🗣️ Dividend Scoring System
| Criteria | Score | Description |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 2 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 30/40
⭐ Rating
NIKE, Inc. maintains a strong dividend profile, marked by a robust history and stable growth potential. However, high payout ratios necessitate careful financial management to sustain future dividends. I recommend considering this stock as a noteworthy but cautious dividend investment opportunity due to its commitment to shareholder returns, backed by solid financial fundamentals.