■ Increase · August 18, 2026
Nike's Dividend Streak at 24 Years, 4% Yield, 2026 Hike Expected
Nike's dividend yield is 4%, and the company is on track to extend its dividend increase streak to 25 years in 2026, despite recent financial struggles.
Dividend Yield and Payment History
Nike (NKE) currently offers a dividend yield of approximately 4%, significantly higher than the S&P 500's average yield of 1.03%. This elevated yield is partly due to the sharp decline in the company's share price, which has fallen 77% from its November 2021 peak. Despite these challenges, Nike has maintained a consistent dividend policy, raising its quarterly payout for 24 consecutive years. In November 2025, the company increased its quarterly dividend to $0.41 per share, translating to an annualized payout of $1.64.
Historically, Nike has announced dividend increases in November, and if this pattern continues, the company is poised to mark its 25th consecutive annual raise in 2026. This would qualify Nike as a Dividend Aristocrat, a designation for S&P 500 companies with at least 25 years of dividend growth. Over the past three fiscal years, Nike has paid out a cumulative $6.9 billion in dividends, representing about 11% of its current market capitalization.
Financial Performance and Turnaround Efforts
Nike's financial performance has been under pressure, with revenue projected to decline by 1.5% in fiscal 2027, followed by modest annual growth of under 4% over the next two years. The company has been navigating a multi-year turnaround under CEO Elliott Hill, who took the helm in October 2024. Hill's initiatives include enhancing product innovation, rebalancing distribution channels, and refocusing on sports marketing. Despite these efforts, the stock has dropped 50% since his appointment.
Nevertheless, Nike's balance sheet remains solid, with $9 billion in cash, cash equivalents, and short-term investments. The company reported a net profit of $3.1 billion in fiscal 2026, which supports its ability to sustain dividend payments. The price-to-earnings ratio is near a 10-year low, suggesting that the market has already priced in significant pessimism.
Dividend Sustainability and Future Outlook
Nike's commitment to returning capital to shareholders is evident in its dividend history, which you can review in detail on its dividend history page. The company's ability to maintain and grow its dividend during a period of declining sales and intense competition is notable. With a payout ratio that remains manageable, the dividend appears sustainable in the near term, even if earnings growth remains sluggish.
Investors interested in Nike's dividend potential can use the dividend calculator to project future income based on current yield and potential increases. While the company's turnaround may take time, the current 4% yield offers a substantial income stream for those willing to wait.
What it means for income investors
Nike's 4% dividend yield, combined with a 24-year streak of increases, makes it a notable income stock, especially given its potential to reach Dividend Aristocrat status in 2026. However, the company's financial performance remains under pressure, and the dividend growth rate may slow if earnings do not recover. Factually, the current yield is nearly four times the S&P 500 average, but the sustainability of future raises depends on the success of the ongoing turnaround.
Reporting based on: The Motley Fool. Figures verified against market data where available.