Nvidia, Broadcom, and Taiwan Semiconductor allocate billions to share repurchases and factory investments instead of higher dividend yields.
Nvidia, Broadcom, Taiwan Semiconductor, and Applied Materials yield below 1%, despite generating substantial cash flows. Nvidia’s dividend yield remains at 0.45% after a 25-fold payout increase to $0.25 per share, while its $5.4 trillion market cap dilutes the yield. The company returned $20 billion to shareholders last quarter, primarily via buybacks, and expanded its repurchase authorization by $80 billion.
Broadcom, with a 0.61% yield, paid $3.1 billion in dividends last quarter but spent only $231 million on capital expenditures. Its $2 trillion market value, up 35% over the past year, keeps yields low. Taiwan Semiconductor, yielding 0.66%, directs cash toward manufacturing, raising its 2026 capital budget to $60 billion-$64 billion.
These companies prioritize growth and shareholder returns through buybacks and capex rather than income-focused dividends, reflecting industry trends in capital allocation.