SFTBY - Is ARM Holdings Stock Going To Pay Dividends? | Benzinga
As Arm Holdings PLC - ADR (NASDAQ: ARM) enters its third day of trading on the open markets, after staging the year's biggest initial public offering on Thursday with a valuation of $54.5 billion, investors may be wondering if the company is planning on returning capital to shareholders via dividends.
The Cambridge-based technology firm, crucial in developing CPUs for Nvidia Corp's (NASDAQ: NVDA) AI-powered GPUs, was acquired by SoftBank Group Corp (OTC: SFTBY) in 2016 for $32 billion. The Japanese firm decided to retain 90% of ARM's ownership post-IPO, releasing just a tenth of its stake to public investors.
On the dividend front, the company said that it currently has no plans to distribute dividends, according to its prospectus, and capital appreciation will be the sole source of gains on any investment in Arm Holdings.
That doesn’t mean that buying shares is a bad investment ...