Nvidia to Return $1 Billion to Shareholders This Fiscal Year

News
By Tarun Iyer
published

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.

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Tarun Iyer
11 Comments Comment from the forums
  • icemunk
    Nvidia: Putting shareholders first.
    Reply
  • childofthekorn
    10653606 said:
    Nvidia: Putting shareholders first.

    Correction: For Profit Entities: Putting shareholders first.
    Reply
  • nebun
    not bad....way to go for nvidia
    Reply
  • dalethepcman
    Nvidia has about 5BN in the bank, I'm sure they can find something better to do with it than pay their investors 1BN...

    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.
    Reply
  • ananke
    they will repurchase and probably split shares later. I guess companies have slower growth projection down the road, so they will focus on financial means to increase capital value
    Reply
  • littleleo
    How much did AMD pay back it's share holders and investors? Makes you wonder what if.
    Reply
  • binger05
    The title is a bit deceptive. According to the article, Nvidia will only be paying 200 millions total in dividends. The 1 billion is Nvidia buying back its stocks. That's taking shares out of the market and out of supporters hands.
    Reply
  • somebodyspecial
    10653659 said:
    10653606 said:
    Nvidia: Putting shareholders first.

    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 :) I would have sought to avoid the 1Q T4 delay at least. Shield may have made it out the door in march having 9 months to hurt consoles/handhelds, and nexus7r2 could have been won also as there is nothing T4 loses in vs s600 chips in a tablet (only power in a phone - which is why they have T4i coming). Nothing wrong with paying investors, unless I can put the money to use BETTER somewhere else (like winning mobile market share with an early T4 & T4i, instead of late T4 early T4i or just putting AMD to bed for good in gpus).

    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...
    Reply
  • Duckhunt
    As usual Nvidia has a lack of ideas because the management are so stupid. No ideas on the horizon on how to get better graphics , physics or even put AI into the decision making process in the they processing. It is all too hard for Nvidia. A company that has to buy it's own shares is a corporation out of ideas. They need a new CEO. Any fool can do that, why pay him millions?
    Reply
  • Duckhunt
    I can't edit my typo, ... making process in the way they do the processing. I think my keyboard can't keep up with my typing.
    Reply