NXP Semiconductors dividend: cash and history
NXP Semiconductors pays a base dividend of $4.06 per share through October 2027, then $4.47 by October 2029. The memo measures coverage against free cash flow: trailing free cash flow was $2.807 billion, while cash also went to dividends, acquisitions, investments and debt.
How much dividend does NXP Semiconductors pay?
The base dividend holds at $4.06 through October 2027, then increases to $4.47 by October 2029. That reflects three years of stable payments and a cash-return policy, but also factory commitments. The bear case cuts the dividend to $3.04 and holds it there; the bull case reaches $4.73 through faster cash recovery.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 7.95 | 9.73 | 10.70 | 10.55 | 6.79 |
| Free cash flow per share | 9.53 | 7.97 | 10.28 | 10.71 | 8.26 |
| − Dividends paid, per share | 4.03 | 4.03 | 3.85 | 3.09 | 2.04 |
What this means. The company's own free cash flow is sometimes higher because it adds back money from equipment and property sales or recoveries, while our count does not; real free cash flow also removes shares given to employees as pay.
Does NXP Semiconductors’ cash cover its dividend?
The table shows the trade-off clearly: NXP has paid dividends, bought businesses and investments, repaid debt and, in some periods, issued new debt. Free cash flow can therefore rise while net debt also rises, because cash left after ordinary operations can be spent on several priorities at once.
Free cash flow is the money left after NXP runs the business and buys the equipment it needs. In Q2 2026, operating cash flow of $860 million less capital spending of $69 million left $791 million of non-GAAP free cash flow. Because semiconductor demand moves in cycles, investors must test the $2.807 billion trailing figure against weaker periods before treating dividends or buybacks as durable.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,423 | 2,055 | 2,686 | 2,827 | 2,277 |
| − Dividends paid | 1,025 | 1,038 | 1,006 | 815 | 562 |
| − Acquisitions | 1,175 | 0 | 0 | 27 | 23 |
| − Debt repaid | 2,926 | 1,000 | 0 | 917 | 1,021 |
| Cash and short-term investments | 3,267 | 3,292 | 4,271 | 3,845 | 2,830 |
What this means. Our net debt is slightly higher because we include finance lease amounts that the company leaves out.
What could change NXP Semiconductors’ dividend?
The view moves toward bear if distributor inventory remains elevated during 2027 and sell-through fails to catch up. A CoreRide delay beyond 2027 would weaken automotive growth through 2029, while VSMC minimum loading would pressure margin and cash.
The view moves toward base if NXP reaches its $16 billion revenue target and CoreRide vehicles begin gradual production ramps. Higher volume and mix would support gross margin, but factory contributions would keep buybacks conditional on leverage.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 4,320 (3,625 / 4,620) | 4,675 (3,552 / 5,220) | 5,040 (3,825 / 5,850) |
| Shares (millions) | 252 (253 / 250) | 251 (253 / 247) | 250 (254 / 245) |
| Dividends per share | 4.06 (3.04 / 4.06) | 4.26 (3.04 / 4.38) | 4.47 (3.04 / 4.73) |
| Net debt | 7,156 (7,868 / 7,299) | 6,371 (8,059 / 6,454) | 4,830 (7,556 / 4,634) |