On Thursday, Nike (NKE) reported that it boosted its dividend by 17% – the company has been raising its dividend every year since 2009.
Inside the Dividend Boost
Nike announced that it has increased its quarterly dividend from 24 cents to 28 cents, or $1.12 annually. Its next dividend will be paid on January 5th to shareholders of record on December 15. The stock will go ex-dividend on December 12. [For more information on NKE’s Dividend Click here]
Funds to Watch
Nike’s major owners include one dividend focused mutual fund and one dividend focused exchange-traded fund (ETF). Below are the details of those two funds.
| Symbol | Fund | Stake | Dividend Yield |
|---|---|---|---|
| VDIGX | Vanguard Dividend Growth Fund | 0.69% | 2.39% |
| VIG | Vanguard Dividend Appreciation ETF | 0.58% | 1.87% |
The Bottom Line
A major dividend increase like the recent boost from Nike is good news for income focused investors. If Nike continues to raise its dividend, it may attract additional dividend focused funds.