Nvidia Could Lift Dividend Yield to 0.5%-1% With $26B-$51B Payout
Nvidia holds a 90% GPU market share and is projected to deliver 39% revenue/EPS growth through 2029 while trading at 25x forward earnings. Bank of America sees $400B free cash flow in 2026-27 and could lift Nvidia’s dividend to 0.5%-1% with a $26B-$51B payout, narrowing its valuation discount to peers.
1. GPU Market Dominance and Growth Projections
Nvidia holds about 90% of the GPU market and is forecast to achieve 39% compound annual revenue and EPS growth through 2029 while trading at roughly 25x forward earnings.
2. Free Cash Flow Outlook
Nvidia is expected to generate over $400 billion in free cash flow across 2026 and 2027, ranking it among the largest cash generators in the technology sector.
3. Dividend Boost Proposal
Market analysts propose allocating $26 billion to $51 billion of free cash flow to raise Nvidia’s dividend yield to between 0.5% and 1%, a move aimed at attracting income-focused investors and closing its valuation gap with peers.