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When looking at dividends policies in real practice, managers need to take the following actions before implementing that structure: first the manager must forecast the cash needed to fund the firms investments, secondly, they must forecast the projected cash flows that the firm will generate in future years, and lastly, subtract the cash needed each year for investment projects from the cash flows anticipated that year in order to determine each years free cash flow (Byrd, Hickman & McPherson, 2013). Using the information from the first three steps, the manager can then establish a maintainable regular dividend. Nikes dividend policy has allowed the company to increase their dividend payouts for 15 consecutive years. Nikes current TTM payout came in at $0.88 with a yield of 1%. Nikes last fiscal year reported a full EPS of $3.46, with a dividend payout ratio of 29.19%. Ten years of company growth and increased revenues has allowed Nike to provide their shareholders with consistent, positive dividends. According to Byrd & Company (2013) the average payout ratio for apparel retailers in 2013 was 20.12%. This means that Nikes 29.19 (current ratio) is well above the market average back in 2013. Investors like to see companies that consistently increase profit and generate increased dividend returns. Over the past five years, Nike has gone from a ratio of 22.22% in 2014 to 29.19% in 2019, an increase of 6.97%. I believe the increase in dividend payout percentage is a result of steady positive business results and profit.