Baidu Approves $5B Share Buyback, Plans First Dividend

Baidu Authorizes Major Capital Return Program

Baidu Inc. announced its board has approved a significant share repurchase program of up to $5 billion. The Chinese internet giant also revealed plans to issue its first-ever dividend to ordinary shareholders in 2026, signaling confidence in its financial stability and a new phase of returning value to investors.

Repurchase Plan and Financial Outlook

The share buyback is scheduled to run through the end of 2028, with the company reserving the right to adjust the program's size and terms. Baidu attributed this initiative to its 'substantial cash reserves' and 'sound financial management capabilities.' This move comes as the company continues to invest heavily in its core search business, artificial intelligence, and its Apollo Go robotaxi unit.

Impact on Shareholders and the Market

This dual announcement is expected to enhance shareholder value and improve investor sentiment. While the specific dividend amount for 2026 has not been disclosed, Baidu stated that future payouts will be supported by sustainable funding sources, primarily from operating profits and proceeds from non-core asset disposals.

Future Outlook

Baidu's strategic decision demonstrates a commitment to balancing long-term growth investments with direct shareholder returns. Investors will be closely monitoring the execution of the buyback and the details of the future dividend policy as the 2026 timeline approaches.

FAQ

Q: How much is Baidu's share repurchase program worth?
A: The program is approved for up to $5 billion and will run through the end of 2028.

Q: When will Baidu pay its first dividend?
A: Baidu expects to declare and pay its first-ever dividend in 2026, although the exact value has not been specified.

Source: Investing.com