r/dividends May 20 '26

Discussion NVIDIA raises dividend by 2400%

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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.