Dell Technologies is a Dividend Growth Monster
Fourth consecutive double-digit dividend hike, massive buybacks and surging AI server demand push Dell past $100B market cap
Dell Technologies (NYSE: DELL) just raised its dividend for the fourth consecutive year — and for the fourth time in a row with a double-digit increase. The company remains firmly on track to meet its commitment of growing the dividend by at least 10% annually through fiscal 2030. At the same time, Dell is aggressively buying back shares, expanding its AI server business at a rapid pace and trading at a modest valuation of just 11.8x earnings despite nearly 20% revenue growth.
Key Points
DELL raises dividend double digits for 4th straight year
Committed to ≥10% annual dividend growth through 2030
$10B new buyback authorization; ~5% share reduction in FY2025
FY2026 revenue +18.8% to $113.5B
Trades at 11.8x earnings; dividend yield 1.6%
Dividend Policy Backed by Capital Discipline
Dell’s financial strategy is built around three core priorities: driving revenue growth, increasing earnings per share faster than revenue, and generating strong cash flow that is largely returned to shareholders.
Management has been clear about its capital return framework. The company targets annual dividend growth of at least 10% through fiscal 2030 — and so far, it has exceeded that pace. In addition, Dell continues to reduce its share count meaningfully. During fiscal 2025 alone, the company repurchased enough shares to shrink the outstanding base by more than 5%.
Following the latest earnings release, Dell announced a 20% dividend increase and authorized an additional $10 billion share repurchase program.
AI Servers Power Growth
Shares surged 22% after earnings as Dell forecast that revenue from its AI server business will double in fiscal 2027. Demand for AI infrastructure remains strong, positioning Dell as a major supplier to enterprises building AI-driven data centers.
Revenue for fiscal 2026 (ended January) rose 18.8% to $113.5 billion. For fiscal 2027, revenue is expected to approach $135 billion, implying continued robust growth.
White Mountains Insurance: 17 Years Without a Dividend Increase
White Mountains Insurance Group (NYSE: WTM) is a diversified insurance and financial services holding company with a market cap of roughly $5.4 billion and a current share price around $2,200. The stock is up about 7% year-to-date and has compounded at an average rate of 16.7% annually over the past five years.
The stock recently crossed a $100 billion market capitalization and trades around $153 per share.
Valuation and Market View
Despite strong revenue growth and accelerating AI demand, Dell trades at just 11.8x earnings. The dividend yield stands at approximately 1.6%.
Analyst sentiment remains broadly positive:
6 Strong Buy
14 Buy
5 Hold
1 Sell
Dell currently combines double-digit dividend growth, large-scale share buybacks, AI-driven expansion and a relatively modest earnings multiple — a mix that has clearly resonated with the market following its latest results.
At DividendHike.com, we focus on tracking dividend growth trends and highlighting companies with consistent payout policies across global markets. By combining dividend data with clear, factual context, we aim to surface income-focused opportunities that may deserve closer attention. Stay tuned as we continue to follow dividend hikes, long-term payout trends, and the companies behind them.
Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.