Nvidia to Return $1 Billion to Shareholders This Fiscal Year
Through a combination of stock buybacks and dividend payments, Nvidia will be returning $1 billion back to its shareholders this fiscal year.
Nvidia has announced that it plans to return $1 billion to its shareholders this fiscal year through a structured stock repurchase program, which includes the $100 million being repurchased in the current quarter. It will also include the company's quarterly dividend of $0.075 per share, which has amounted to about $50 million a quarter.
This announcement brings the projected total amount returned to shareholders to $1.2 billion since the company's quarterly dividend program commenced in November 2012.
"Nvidia's strategies are gaining traction in the market and make us confident in our ability to continue generating cash," said Jen-Hsun Huang, president and chief executive officer of Nvidia. "We are now broadening our program of giving back cash to our shareholders and plan to return a further $1 billion by the end of this fiscal year."
Further details of the plan will be provided next month with the release of Nvidia's financial results for the first quarter of FY 2014.
Correction: For Profit Entities: Putting shareholders first.
As nice as it seems for shareholders, I am always wearing of a company paying dividends to stockholders. I would prefer the company reinvest the $'s into capitol or acquisitions and increase the value of the stock over paying me a few dollars a year.
Correction: For Profit Entities: Putting shareholders first.
Buying back stock raises the value of my stock. I'd rather them invest in tech than give me help but that's just me. I would have rather had T4 on time, rather than a Q delay due to spending on T4i to get it 6 months ahead of schedule. Why not do both and not return money to investors?
Either way, NV is doing investors favors, where AMD just can't.
"Correction: For Profit Entities: Putting shareholders first."
No need for a correction, NV (for profit or not, insert company name here) is still putting shareholders first by lowering outstanding shares and giving a dividend. BOTH options help shareholders. Dividend directly puts money in my pocket, while taking shares out of circulation shows a strong belief in the company going forward (usually) and raises the share price by default doing it. I make money both ways, and people believe in you more when you put your money where your mouth is (buying themselves in trying times says a lot to me - IE - they don't expect to lose money on their own stock). What does for profit or not have to do with icemunk's statement?
FYI: They only have 3.73B in the bank, not 5B (regarding another comment). AMD still owes 2B in debt and has less than a Bil in cash (NV has no debt). I would have pushed up maxwell and T4 at once and killed AMD while winning nexus7r2 bid. But I'm ruthless like that
BTW the comment system on here sucks big time now. I'm guessing this will be my 4th failed post...LOL. I'm about to quit comments totally here for a while. I see no benefit to messing with this other than looking a bit different and crashing a lot. Even the forum button crashed yesterday. At least that is fixed today.
Yep, post crashed, had to come to the forum and paste it here. Not sure if this even works for posting yet...Here goes nothing...