By P.R. Venkat and Tracy Qu


Baidu is set to pay its inaugural dividend this year and authorized a $5 billion share-buyback program, as part of the Beijing-based tech company's broader capital-return strategy.

China's dominant search engine said its board approved a dividend policy for the company's ordinary shares that could include regular or special payouts.

"With our substantial cash reserves and sound financial management capabilities, we aim to create and continuously enhance long-term value for our shareholders through our proactive shareholder return initiatives," Baidu said Thursday.

The planned share-repurchase program will run through Dec. 31, 2028, with purchases made from time to time in the open market. This follows Baidu's $5 billion share buyback plan announced in 2023, which was effective through the end of 2025.

Baidu said the declaration, timing and amount of any future dividend will be determined at the board's discretion, based on factors including financial performance, capital needs and market conditions.

Baidu's cash and investments totaled 296.4 billion yuan, equivalent to $42.7 billion, as of September 2025.

Share buybacks have become fairly routine among Chinese tech companies in recent years. Alibaba Group approved a $25 billion share repurchase program in 2024, while Tencent announced a $10 billion share buyback last year.

Baidu's Hong Kong-listed shares surrendered opening gains to trade0.6% lower at 136.30 Hong Kong dollars, equivalent to $17.45, in early morning trading.

Citi analysts said in a research note that Baidu's "more consistent and transparent approach to shareholder returns is [likely] to improve investor confidence." This is expected to be viewed positively by the market, they said.

Once considered one of China's most important technology companies, Baidu has been facing pressure on both its top and bottom lines as its main advertising business slows. The company has been investing heavily in fields such as chip development, artificial intelligence and self-driving technology as it seeks new avenues for growth.


Write to P.R. Venkat at venkat.pr@wsj.com and Tracy Qu at tracy.qu@wsj.com


(END) Dow Jones Newswires

02-04-26 2209ET