Nike said its board has approved a new $12bn share buyback programme and a two-for-one split of its class A and class B shares.
Shares of the world's No 1 sportswear maker rose 4 percent to $130.87 in after-hours trading on Thursday.
The company also raised its quarterly cash dividend on its class A and class B shares by 14% to 32 cents per share, on a pre-split basis, payable on 4 January.
Nike already has an $8bn share repurchase programme that is expected to be completed by the end of May.
The new four-year programme will start after the existing plan expires, the company said.
Nike said the stock split will be in the form of a stock dividend payable on 23 December and the stock is expected to begin trading at the split-adjusted price on 24 December.
The company, co-founded by Phil Knight and Bill Bowerman in 1964, has raced ahead of its top rival Adidas, while fending off smaller rivals such as Under Armour.
Nike said in October that it is set to grow faster over the next five years than it had in the previous five.
The company expects revenue to increase 63% to $50bn by 2020, boosted by growth in its e-commerce, women's and Jordan brand businesses.
The company's e-commerce business, which brings in just over $1bn per year, is expected to grow to $7bn by 2020.