Nvidia will distribute its third quarterly dividend for 2026 on October 2, paying $0.25 per share. This amount is unchanged from the previous dividend issued on June 26, reflecting the company’s consistent approach under its dividend strategy.
Continuing a Growth-Driven Dividend Approach
The chipmaker follows a policy to return half of its free cash flow to shareholders through dividends and buybacks. This means investors holding 100 Nvidia shares will receive $25 before taxes this time, a remarkable increase compared to the mere $1 paid out in April.
With roughly 24.4 billion shares outstanding, the total dividend payout will be around $6.1 billion. To qualify for the October dividend, shares must be purchased by August 27, based on current data.
Despite an aggressive growth strategy, Nvidia’s forward payout ratio stays low at 7.84%, indicating most earnings are reinvested into the business. The company has raised dividends three years running, signaling ongoing commitment to rewarding shareholders.
Looking ahead, Nvidia’s dividend compound annual growth rate is projected at 262.2% for 2026, slowing somewhat but still strong at 197.4% in 2027. Over five years, growth is expected to surpass 116% in 2026 and 128% in 2027, with a 10-year CAGR above 51%. Currently, Nvidia offers a dividend yield of 0.13%, below the sector average of 1.37%. The stock typically recovers its price within 2.5 days after the ex-dividend date.
