Nike announced Thursday that its board of directors has approved a new four-year, $12 billion program to repurchase shares of Class B common stock.
The sporting goods company raised its quarterly cash dividend by 14 percent, on a presplit basis. Nike also approved a 2-for-1 split of both Class A and Class B common shares. The stock split will be in the form of a 100 percent stock dividend payable Dec. 23.
Shares of Nike rose nearly 4 percent in extended trade Thursday.
"In a growing sports industry, Nike is the clear leader," said CEO Mark Parker in a statement.
"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."
After the split, outstanding shares of Class A and Class B common stock will increase to approximately 353 million and 1.36 billion, respectively, based on the outstanding shares as of Nov. 16, 2015.
Nike expects its common stock to begin trading at the split-adjusted price on Dec. 24 of this year.