NVDA raises quarterly dividend to $0.25 per share and authorizes an additional $80 billion in stock repurchases.
Nvidia announced a significant expansion of its capital return program, increasing its quarterly dividend to $0.25 per share from $0.01 and authorizing a new $80 billion stock buyback program. The company also has $39 billion remaining from a prior buyback authorization.
The move follows a period of substantial free cash flow generation, with Nvidia planning to return 50% of its free cash flow to investors in 2026. Historically, Nvidia has allocated 47% of its free cash flow from 2022-2025 to dividends and buybacks, below the 80% average of peers.
Analysts suggest the increased capital returns could drive a rerating of Nvidia’s price-to-earnings ratio, similar to Apple’s experience after expanding its own buyback program.