The popular yet struggling apparel maker Nike (NYSE: NKE) is scheduled to pay its quarterly dividend next week, offering at least some silver lining to its shareholders despite the protracted stock market decline.
Specifically, the company’s upcoming dividend was declared on August 6 and is scheduled to be paid on Thursday, October 1. Nike’s annual yield stands at a rather high 4.62%, and the quarterly dividend will amount to $0.41.
Thus, owning 100 NKE shares will yield $41. Meanwhile, Travis Knight, CEO of the stop-motion animation studio Laika and the son of Nike co-founder Phil Knight, can expect to receive roughly $7.8 million on his 19 million shares.
Meanwhile, Phil Knight himself, the firm’s second-biggest individual shareholder, will receive approximately $5.25 million for his 12.8 million NKE.
Notably, the ex-dividend date for the October 1 payment passed on September 1, meaning new investors will not benefit from the upcoming payment.
Nike stock price crashes 80% from 2021 highs
Elsewhere, Nike stock has been suffering an exceptionally difficult decade ever since reaching its briefly held highs in late 2021.
After a strong eleven years that started as the Great Recession was ending and took NKE equity more than 1,300% higher, the apparel company began a descent that took it from highs above $175 five years ago to $35.51 at the latest, September 18, 2026, close.
The steep decline also put Nike stock at prices not seen for about 12 years: since 2014.
Why Nike stock price plummeted 80% in five years
Simultaneously, pinpointing the exact cause of the downturn is difficult, arguably because the company is struggling with multiple simultaneous headwinds.
The firm’s transition toward selling its products directly to consumers has proven difficult, and some commentators blamed Nike’s decision to lean into the ‘culture war’ in its promotional material for the poor performance.
Still, the overall economic situation since the end of the COVID-19 pandemic is probably more to blame. Inflation has been elevated for years, squeezing consumers, while the numerous supply chain disruptions also made production more difficult.
Lastly, the situation has been exacerbated by the rise of various competitors, and changes in the industrial and consumer profile of China have also led to a decline in sales in one of the world’s largest markets.
Featured image via Shutterstock
