Nike (NYSE: NKE) investors holding 100 shares will receive $41 when the company pays its next quarterly dividend on October 1, 2026.
The payment was declared on August 6 with no change from the previous quarterly payout of $0.41 per share.
Investors must own the stock before the September 1, 2026 ex-dividend date to qualify. The payout maintains Nike’s annual dividend rate at $1.64 per share, giving the stock a 4.02% yield at its recent price of $40.76.
If the dividend remains unchanged for a full year, investors holding 100 shares would collect approximately $164 annually.
Notably, Nike’s dividend yield is significantly higher than the 1.89% average yield across the consumer discretionary sector.
Meanwhile, the company’s forward payout ratio stands at 75.25%, indicating a substantial portion of earnings is being returned to shareholders through dividends.
It is worth noting that Nike last increased its dividend in late 2025, raising the quarterly payment from $0.40 to $0.41 per share. The increase extended the company’s dividend growth streak to roughly 24 consecutive years, bringing it within one year of qualifying for Dividend Aristocrat status.
If Nike announces another increase later this year matching the previous hike of about 2.5%, the quarterly dividend would rise to approximately $0.42025 per share.
Indeed, the company has historically announced its annual dividend increase in November, making a potential hike later in 2026 a key event for income-focused investors.
Nike’s elevated dividend yield comes as the stock remains under heavy pressure. Shares fell to a 12-year low of $38.86 before recovering to $40.76 as of August 21.
Nike stock price struggles
The stock has lost about 48% over the past year, more than 35% year-to-date, and nearly 78% from its November 2021 record high of $177.
The latest sell-off was largely triggered by disappointing results and weaker guidance from rival On Holding, which weighed on sentiment across the premium athletic footwear sector.
Additional pressure has come from a recent JPMorgan downgrade to ‘Underweight’ with a $40 price target, concerns over weak demand in China, softness in Nike’s direct-to-consumer business, increased competition, tariff-related headwinds, and a slower-than-expected turnaround under CEO Elliott Hill.
Despite these challenges, Nike has maintained its focus on returning capital to investors. The company returned approximately $2.5 billion to shareholders during fiscal 2026, primarily through dividends, while significantly reducing share buybacks as free cash flow remained under pressure.
At the same time, revenue stabilized near $46.4 billion in fiscal 2026, with improvements in North America and wholesale operations helping offset ongoing weakness in China and several other markets.
Featured image via Shutterstock
