Baidu approves $5 billion share buyback program and dividend policy

Baidu Inc. (NASDAQ: BIDU, HKEX: 9888) announced that its board of directors approved a $5 billion share repurchase program and adopted a dividend policy for the first time in the company's history.

The share buyback program authorizes repurchases of up to $5 billion of the company's shares through December 31, 2028. The board stated it will periodically review the program and may adjust terms and size as appropriate. Repurchases may occur through open market transactions at prevailing prices or other legally permissible means, subject to market conditions and regulatory compliance.

The Beijing-based AI company also established a dividend policy for its ordinary shares, which may include regular and special dividend distributions. The board expects to declare the first dividend payment in 2026, though the declaration, timing and amount will be determined at the board's discretion based on financial performance, capital requirements and market conditions.

According to the company's statement, future dividend distributions will be funded primarily from operating profits and potentially supplemented by proceeds from non-core asset disposals and other investment returns.

Baidu trades on NASDAQ under the ticker BIDU and on the Hong Kong Stock Exchange under ticker 9888. One American depositary share represents eight Class A ordinary shares. The company was founded in 2000 and describes itself as a leading AI company with strong internet foundation.

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