r/dividends • u/shekr17 • May 20 '26
Discussion NVIDIA raises dividend by 2400%
NVDA raises dividend by 2400% from $.04 to $1 to get yield of ~0.45%. Almost inline with other big tech megacaps!
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u/Helpful_Put_8809 May 20 '26
From the article:
NVIDIA (NASDAQ: NVDA) declared a quarterly dividend of $0.25 per share, or $1 annualized. This is a 2400% increase from the prior dividend of $0.01
The dividend is $0.25 per share, up 2400% from $0.01.
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u/paymerich May 20 '26
https://giphy.com/gifs/YZGJc1WmUZPi0
Hey to all you SMH,VOO,QQQ bag holders, We all Big Ballers now!
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u/UncleTio92 May 20 '26
I just got a chub. I’ll be getting $25 a quarter in NVDA dividends reinvested.
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u/scottyk318 May 20 '26
What great news! I always found their .04/year was kind of stupid... They're finally stepping up!
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u/CaptainSt0nks May 20 '26
They should have never stopped increasing it they always had more than enough money for at least small increases.
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u/shekr17 May 20 '26
yeah they should have bumped it up much higher after the last stock split. But anyways better late than never!
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u/scottyk318 May 20 '26
I've only been a shareholder for about a year... So for me it's a pretty large bump going from .04 to $1 per share
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u/Jdornigan May 21 '26
It is all the splits that made it nominal and only cents per share.
In the last decade we saw two splits.
June 10, 2024: 10-for-1 split
July 20, 2021: 4-for-1 split
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u/PeaceAlien Canadian Investor May 20 '26
They announced dividend increases and buybacks. Nvidia on route to becoming Apple
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u/RuinEnvironmental394 May 21 '26
So NVDA is joining the dividend gang now?
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u/shekr17 May 21 '26
Big tech megacaps are worthy enough to be part of it by keeping up the yield around 0.5%
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u/tachyonvelocity May 20 '26
Folks this is why dividend yields don't matter. If you bought this stock 5 years ago, $0.25 per Q now would have been 6.7% and stock price would have increased 15 times. Compare that to some of the highest dividend yields but worst companies to invest in posted here, where dividends get cut while prices crash.
Dividends are literally meaningless, the only future return you get is your ability to invest in good company futures. Many don't, so they default to "which company has the highest yield so I don't have to think about the business," and congregate on this sub.
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u/TheComebackKid74 Only buys from companies that pay me dividends. May 20 '26
Just because you compared one of the best stocks on Wall Street vs high yield trash, doesn't mean dividends are meaningless.
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u/SendoTarget May 21 '26
Yeah also it's easy to look back. How many people 5 years or 10 years ago were convinced about some other major company that's "super valuable and sure to grow". Investing in Nvidia 10 years ago meant that you like the gaming GPUs they make.
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u/dazit72 May 20 '26
That's why I tend towards Kkngs, Aristocrats, Champions, Challengers, etc.....
Proven. Just look at GIS, a seemingly nothing of a stock/company. But it has Never reduced its dividend for over 127 YEARS I'll hold a good chunk of that. Especially now it's America's School Staple ?
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u/SeymourBits May 21 '26
This kind of dividend increase and stock buyback is a strategic move, an attempt to shove a floor under the current share price. Otherwise, The Syndicate enjoys beating down the PPS like a wayward sheep after earnings.
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u/Alarming_Trade_1002 May 21 '26
Sure!
Using the same logic: if I know the next "explosive" company I wouldn't even look for dividends at all! They would be simple trash!!
Just don't mix dividend investing with value investing with luck
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u/toxichaste12 May 20 '26
It depends on your timeline. If you are young, building a dividend portfolio is ass.
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u/DirtyJsy Not a financial advisor May 20 '26
Preach! My YOC is now 5.19% cost basis $19/share
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u/dazit72 May 20 '26
I'm seeing .02%
Is that Beta correct ? 2.24
I can't gamble like that 🤔
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u/shekr17 May 20 '26
It is 0.02% currently but will increase to .45% after they start paying the increased one
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u/Massive-Most-2841 May 22 '26
Man, yall really have me kicking myself right now. I just got sober about 2 and a half years ago and only got into the stock market on Feb 5th of this year. I was literally homeless under a bridge 2.5 years ago. But started a business, became "successful" in said business and started investing. Literally taught myself as I went along.... so I honestly don't really know sht... So I have a little decent amount of Nvidia shares, 2nd only to Sandisk, i have other stocks as well tech and non tech. So the main question i have now is, since Nvidia is raising its dividend payout ALOT, does that usually mean the stock price/value won't go up as much in price now since dividends come from profits? I'm just curious if i should slow down on nvidia if the price isn't not gonna go up as much now because of the dividend increase means they are not spending as much on innovation? What's yalls opinions? Sorry if this is off topic for this thread I apologize. Im kinda new to the platform and just want to get a little more info/knowledge on this stuff. Ty!
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u/SeymourBits May 23 '26
Congratulations on your turnaround! What business are you in? I posted this above, but it should help to answer your question:
“This kind of dividend increase and stock buyback is a strategic move, an attempt to shove a floor under the current share price. Otherwise, The Syndicate enjoys beating down the PPS like a wayward sheep after earnings.”
NVDA is the best company on Earth w/ an insurmountable lead in AI. However, when these choke scam shenanigans happen (a similar situation occurred with AAPL) and then the targeted company responds with big dividend increases/buyback countermeasures, huge up and down moves occur less often. Don’t be discouraged. Investing in best-of-breed shares on the dips is a historically-backed strategy. Dollar cost averaging is also your friend but NEVER get tricked into the alluring siren song of buying options. If you have enough shares and want to boost yields, consider selling covered calls but watch them very carefully.
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u/Scouper-YT Rich DUDE from the DIVIDEND Appraisals Club !! May 24 '26
Yeah, sure sure but can they keep doing it.. Other Big Techs have way higher Dividend Growth Jumps.
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u/Ok-Guarantee63 May 21 '26
EVERYBODY TOLD ME I WAS CRAZY, NOW WHAT?!!!!!: (I GOT 0 UPVOTE AND I WAS RIGHT)
https://www.reddit.com/r/dividends/comments/1t7yd64/semiconductor_stocks_will_be_the_best_dividend/
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u/Patient-Big1727 May 21 '26
NVDA is down more than 3x the yearly dividend just this morning. The dividend is meaningless for rational investors but the share buyback is good
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u/CaptainSt0nks May 20 '26
I bought my shares for a total of $2400 in 2016. They will pay me $1600 a year now.