Nike Inc. has more money than it can spend, so it’s going to keep giving it back to shareholders.
The athletic giant said its board approved a four-year plan to repurchase $12 billion of the company’s Class B stock, following up on the current $8 billion which should close before the end of the fiscal year next spring.
Nike has about 678 million shares of Class B shares outstanding.
The company also boosted its quarterly dividend by 14 percent to 32 cents a share and is said to have completed a two-for-one stock split next month.
Investors liked what they saw and pushed the stock up 3.7 percent to $130.45, leaving the company with a market capitalization of $107.2 billion.
Indulging in a little bit of chest thumping, Mark Parker, president and chief executive officer of Nike, said: “In a growing sports industry, Nike is the clear leader. We are built for growth, while also staying committed to creating shareholder value over the long-term. We’ve proven it time and again, having returned over $23 billion to shareholders over the last 14 years through share repurchases and dividends. Moving forward, we see even greater potential for Nike as we continue to unlock new markets, new experiences and new products.”
The company plans to drive its annual sales to $50 billion by 2020, up from $30.6 billion last year.