Nvidia surprises with a 2,400% quarterly dividend hike in a capital-return move

Nvidia used its latest earnings report to do more than post another quarter of rapid growth. The chipmaker said on May 20 that it would raise its quarterly cash dividend to 25 cents a share from 1 cent, a 2,400% increase, and add $80 billion to its share repurchase authorization. The move came alongside first-quarter fiscal 2027 results that showed revenue of $81.6 billion, up 85% from a year earlier, and record data center revenue of $75.2 billion. Nvidia’s investor relations site showed the stock at $215.33 on a delayed basis on May 23 after the post-earnings reaction. ### How big is the dividend change in dollar terms? Nvidia said the quarterly payout will rise to $0.25 per common share from $0.01 per share. That is the basis for the 2,400% figure that drew attention after the earnings release. The company said the higher dividend will be paid on June 26, 2026, to shareholders of record on June 4. (investor.nvidia.com) Barron’s and other market coverage described the increase as a shift in Nvidia’s capital-return profile, even though the payout remains small relative to the company’s market value and cash generation. Barron’s said the increase took Nvidia’s quarterly payout to 25 cents from 1 cent. (investor.nvidia.com) ### Why did the dividend hike arrive with a buyback increase? On May 18, Nvidia’s board approved an additional $80 billion for share repurchases with no expiration date, the company said in its earnings release. Nvidia said it had $38.5 billion remaining under its prior authorization at the end of the quarter, meaning the new approval significantly expanded the company’s capacity to return cash through buybacks as well as dividends. (barrons.com) Yahoo Finance reported that the dividend increase and the enlarged repurchase plan were announced together. That pairing matters because Nvidia has historically returned far more cash through buybacks than through dividends, including $41.1 billion to shareholders during fiscal 2026 in the form of repurchased shares and cash dividends, according to its fourth-quarter release. (investor.nvidia.com) ### What did the earnings report show at the same time? Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion for the period ended April 26, 2026. The company said that was up 20% from the prior quarter and 85% from a year earlier. Net income rose to $44.1 billion, or $1.76 diluted earnings per share, from $14.9 billion, or $0.60 diluted earnings per share, a year earlier, according to the release. (finance.yahoo.com) Jensen Huang, Nvidia’s chief executive, said in the earnings release that “AI inference token generation has surged tenfold in one year.” The company also said second-quarter revenue was expected to be $88 billion, plus or minus 2%. Zacks said the next Nvidia earnings release is expected on August 26, 2026. (investor.nvidia.com) ### Where did the shares trade after the announcement? The Motley Fool said Nvidia beat estimates on revenue, profit and guidance in the report that accompanied the dividend move. The same coverage cited shares near $218 late on May 22 as investors digested the results. Nvidia’s investor relations page showed a delayed price of $215.33 on May 23. (investor.nvidia.com) June 4 is the next date investors will watch for the dividend because that is the record date Nvidia set for the higher payout. June 26 is the payment date, and August 26 is the date Zacks expects for Nvidia’s next earnings release. (investor.nvidia.com) (fool.com)