WEB DESK: Nike is repurchasing its $12 billion worth of stock, raise its dividend, and execute a 2-for-1 stock split, Business Insider reported.
This announcement was made in a statement after market closed on Thursday.
The company said that it expects its current $8 billion share-repurchase plan to run out before the end of its fiscal 2016, and its new $12 billion program, which will run for four years, will kick in when that plan runs out.
Nike’s dividend increase is a 14% increase, to $0.18 per share from $0.14. This buyback announcement from Nike is how corporations have been opting to deploy cash in the form of stock buybacks rather than business investment.
Source: Business Insider