Dell Raises Quarterly Dividend by 20% Amid Strong AI-Driven Growth
Dell Technologies has raised its quarterly dividend by 20%, marking a significant increase for investors, especially since the company only initiated its dividend program in 2023. The surge in Dell's stock price—up nearly 325% year-to-date—is largely attributed to strong demand for AI servers that integrate GPUs and other components into full-scale server solutions. This has driven robust financial performance, with Q2 FY2027 revenue reaching $47 billion (a 58% YoY increase) and diluted earnings per share rising by 273%. Dell's improved free cash flow—up 224% in the second quarter—has enabled higher dividend payments. The company also repurchased nearly $3.8 billion worth of shares, far exceeding its quarterly dividend outlay of $405 million. Despite concerns about potential AI demand slowdowns, hyperscalers continue to raise their capital expenditure forecasts for 2024 and beyond.
Tickers: $DELL
Topics: AI servers Dell Technologies dividend increase GPU demand