Nvidia (NASDAQ: NVDA) is paying its first boosted dividend tomorrow, June 26, 2026, marking the commencement of its new share buyback strategy announced in March.
As part of the new program, the chipmaker plans to deploy 50% of its free cash flow toward stock buybacks and dividends this year as it restarts manufacturing tied to the new orders.
Prior to the hike, 100 shares earned only a symbolic sum – $1 per quarter at the old $0.01 rate, to be precise. Now, the same investment nets $25 per quarter, or $100 annually if the new payout is maintained.
As such, tomorrow’s Nvidia stock dividend represents an increase of no less than 2,400% from the previous one issued in April, according to DivvyDiary data.
A new milestone in Nvidia dividend history
For context, with 24.22 billion Nvidia shares outstanding as of press time, more or less $6.055 billion will be distributed to shareholders.
These new initiatives put Nvidia more in line with the broader industry, as, for example, Meta (NASDAQ: META) is reportedly planning between $115 billion and $135 billion in capital expenditures as well.
The last time management increased the payout was in June 2024, when they lifted it from $0.004 to $0.01. Currently, the chipmaker offers an annual payout of $0.28 per share, which is a dividend yield of 0.14% (verseus the industry average of 1.37%).
One day, before the historic Nvidia dividend payout date, the shares are up 1.2% in-premarket, the optimism generated by both tomorrow’s shareholder reward and a broader rally in global chip shares following Micron’s (NASDAQ:MU) strongest quarter on record.
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