Nvidia Returns $26B to Shareholders as Board Expects Three Years of Profits
Nvidia's Board Bets on Three Years of Strong Profits
In its fiscal second quarter, Nvidia returned approximately $26.0 billion to shareholders via share repurchases and dividends.
This figure exceeds the company's $21.3 billion in free cash flow for the quarter and nearly 10 times its capital spending for the period.
Nvidia management's stated plan is to return 50% or more of free cash flow to shareholders, with a current year-to-date return of 60%, according to CFO Colette Kress.
The company's significant returns and increasing dividend payout suggest that its board expects profits like those in the recent quarter to last at least three years.
Nvidia's stock price is about $211, close to the average prices paid for shares repurchased during the fiscal second quarter of around $202 to $214 per share.