Nvidia has returned around $46 billion to shareholders through dividends and buybacks in the first two quarters of its current fiscal year. The chip maker lifted its quarterly dividend 2,400% in June, and its cash balance and buyback authorization suggest another increase could follow.
Nvidia has returned around $46 billion to shareholders through dividends and stock buybacks in the first two quarters of its current fiscal year, and much more is likely on the way. The chip designer remains the world's most valuable company, with a market cap of over $5.1 trillion as of Sept. 15.
Why Nvidia gave its dividend a major boost
Nvidia first paid a dividend in November 2012, and after its 4-for-1 split in 2021 and 10-for-1 split in 2024, that initial payout adjusts to $0.001875 per share quarterly. In June, the company raised its quarterly dividend 2,400%, from $0.01 per share to $0.25 per share.
The jump followed a surge in Nvidia's results. Over the past three years, revenue and net income have climbed 431% and 546%, respectively. The company now holds $99.4 billion in cash, cash equivalents, and short-term securities on its books.
Why another hike might be coming
Nvidia still has room to keep reinvesting in its business while rewarding shareholders more. Most of the $46 billion returned this year came through buybacks: the company spent $20 billion and $19.7 billion on repurchases in the first and second quarters, respectively.
Another dividend increase could put Nvidia on the same tier as more mature dividend payers like Microsoft and Apple, whose payouts have grown reliably over the years even without a yield high enough to draw income investors. Nvidia still has $99 billion in buybacks planned under its current authorization, though it's unclear how the company will execute them.
Source: Fool
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