What Is the Dividend Payout for NVIDIA Stock

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2 weeks ago

Investing in stocks can be a great way to grow wealth. Many investors look for companies that pay dividends. Dividends are a portion of a company’s profits shared with shareholders. NVIDIA is a well-known tech company. But does NVIDIA pay dividends? If yes, how much?

This article will explain NVIDIA’s dividend policy in detail. We will cover:

What Are Dividends?
Does NVIDIA Pay Dividends?
NVIDIA’s Dividend History
How Often Does NVIDIA Pay Dividends?
NVIDIA’s Dividend Yield
Factors Affecting NVIDIA’s Dividend Payout
How to Invest in NVIDIA for Dividends?
Comparing NVIDIA’s Dividend with Other Tech Stocks
Future Outlook for NVIDIA’s Dividends
Pros and Cons of NVIDIA’s Dividend Policy

By the end of this article, you will have a clear understanding of NVIDIA’s dividend payouts.

1. What Are Dividends?

Dividends are payments made by companies to shareholders. These payments come from the company’s profits. Not all companies pay dividends. Some prefer to reinvest profits back into the business.

There are two main types of dividends:

Cash Dividends – Paid in cash directly to shareholders.
Stock Dividends – Paid in the form of additional shares.

Dividends are usually paid quarterly (every three months). Some companies pay them monthly or annually.

Investors like dividends because they provide passive income. Dividend-paying stocks are popular among long-term investors.

2. Does NVIDIA Pay Dividends?

Yes, NVIDIA pays dividends. However, its dividend policy is different from many traditional dividend stocks.

NVIDIA started paying dividends in 2012. But the payments are very small compared to other dividend-paying companies. NVIDIA focuses more on growth and reinvesting profits.

As of 2024, NVIDIA’s dividend is $0.04 per share per quarter. This means shareholders get $0.16 per share annually.

For example, if you own 100 shares of NVIDIA, you would receive:

$4 per quarter ($0.04 x 100 shares)
$16 per year ($0.16 x 100 shares)

This is a very low dividend compared to other stocks. But NVIDIA’s stock price growth makes up for it.

3. NVIDIA’s Dividend History

NVIDIA has a short dividend history. Here’s a timeline:

2012: NVIDIA paid its first dividend of $0.075 per share (annual).
2013-2017: The dividend remained at $0.30 per share per year.
2018: NVIDIA increased the dividend to $0.56 per year.
2019-2023: The dividend was reduced to $0.16 per year ($0.04 per quarter).

The reduction in 2019 was due to NVIDIA’s focus on growth. The company wanted to invest more in AI, gaming, and data centers.

4. How Often Does NVIDIA Pay Dividends?

NVIDIA pays dividends quarterly. The payment schedule is as follows:

Declaration Date: When NVIDIA announces the dividend.
Ex-Dividend Date: The cutoff date to be eligible for the dividend.
Record Date: The date when shareholders are recorded.
Payment Date: When the dividend is paid to shareholders.

Here’s NVIDIA’s typical dividend schedule:

Quarter	Declaration Date	Ex-Dividend Date	Payment Date
Q1 (March)	February	March	March
Q2 (June)	May	June	June
Q3 (September)	August	September	September
Q4 (December)	November	December	December

Investors must own the stock before the ex-dividend date to receive the payment.

5. NVIDIA’s Dividend Yield

Dividend yield shows how much a company pays in dividends relative to its stock price. The formula is:

Dividend Yield = (Annual Dividend per Share / Stock Price) x 100

As of July 2024:

NVIDIA’s stock price = ~$900
Annual dividend = $0.16

Dividend Yield = ($0.16 / $900) x 100 = 0.018%

This is extremely low. Most dividend investors look for yields above 2-3%. NVIDIA’s yield is almost negligible.

Why Is NVIDIA’s Dividend Yield So Low?

The stock price has grown much faster than dividends.
NVIDIA reinvests profits into AI, GPUs, and data centers.
The company prefers stock buybacks over high dividends.

6. Factors Affecting NVIDIA’s Dividend Payout

Several factors influence NVIDIA’s dividend policy:

A. Earnings Growth

NVIDIA’s revenue comes from:

Gaming GPUs (GeForce)
Data Center GPUs (AI & cloud computing)
Professional Visualization (Quadro)
Automotive chips

Strong earnings allow NVIDIA to pay dividends. But most profits are reinvested.

B. Cash Flow

A company needs strong cash flow to pay dividends. NVIDIA has billions in cash reserves. But it uses cash for R&D and acquisitions.

C. Debt Levels

NVIDIA has low debt. This means it could increase dividends if needed.

D. Competition

AMD, Intel, and other chipmakers compete with NVIDIA. NVIDIA spends heavily to stay ahead.

E. Economic Conditions

During recessions, companies may cut dividends. NVIDIA has maintained its small dividend even in downturns.

7. How to Invest in NVIDIA for Dividends?

NVIDIA is not a top choice for dividend investors. But if you want to invest:

Step 1: Open a Brokerage Account

Use platforms like:

Robinhood
Fidelity
E*TRADE
Charles Schwab

Step 2: Buy NVIDIA Stock

Search for “NVDA” (NVIDIA’s ticker symbol).
Purchase shares.

Step 3: Hold Shares Before Ex-Dividend Date

You must own the stock before the ex-dividend date to get the dividend.

Step 4: Receive Dividends

Dividends are paid directly to your brokerage account.

8. Comparing NVIDIA’s Dividend with Other Tech Stocks

Let’s compare NVIDIA’s dividend with other tech giants:

Company	Dividend per Share (Annual)	Dividend Yield (2024)
NVIDIA	$0.16	0.018%
Intel	$0.50	1.5%
IBM	$6.64	4.2%
Apple	$0.96	0.5%
Microsoft	$3.00	0.7%

NVIDIA’s dividend is the lowest among these companies.

9. Future Outlook for NVIDIA’s Dividends

Will NVIDIA increase its dividend? Possible scenarios:

A. Dividend Increase

If NVIDIA’s growth slows, it may raise dividends to attract investors.

B. No Change

NVIDIA may keep dividends low to fund AI and GPU development.

C. Dividend Cut

Unlikely unless NVIDIA faces financial trouble.

Most analysts believe NVIDIA will keep its dividend small. The company is focused on expansion, not high payouts.

10. Pros and Cons of NVIDIA’s Dividend Policy

Pros:

✅ Small but Consistent – NVIDIA has paid dividends since 2012.
✅ Growth Potential – Reinvesting profits leads to higher stock prices.
✅ Low Debt – NVIDIA can afford dividends if needed.

Cons:

❌ Very Low Yield – Not attractive for income investors.
❌ Unlikely to Grow Soon – NVIDIA prioritizes innovation over dividends.
❌ Better Alternatives – Other stocks offer higher yields.

Final Thoughts: Should You Buy NVIDIA for Dividends?

No, if you want high dividend income. NVIDIA’s yield is too low.

Yes, if you want growth + small dividends. NVIDIA’s stock price has surged over the years.

Best For:

Investors seeking capital appreciation.
Those who believe in NVIDIA’s AI and GPU dominance.

Not Ideal For:

Retirees needing steady dividend income.
Investors who prefer high-yield stocks.

Conclusion

NVIDIA pays a small dividend of $0.04 per share quarterly. The yield is very low (0.018%). The company focuses more on growth than dividends.

If you want high dividends, consider other stocks like IBM or Intel. But if you believe in NVIDIA’s long-term growth, its small dividend is a bonus.

Would you invest in NVIDIA for dividends? Let us know in the comments!