Nvidia stock ($NVDA) will undergo its sixth stock split, with shares trading at one-tenth of the price starting June 10, 2024. Before the Q1 2024 earnings call on May 22, 2024, when the split was announced, NVDA closed at $949.50. Since then, the stock has reached an all-time high, crossing the $1,150 mark. Although the split price officially becomes effective on June 10, 2024, investors must own shares by market close (4:00 PM ET) on June 6, 2024 to receive new shares in the split.
Management also announced a 150% increase in cash dividends – from $0.04 per share to $0.10 per share – which will ultimately yield a dividend of $0.01 per share on the stock post-split. Here’s what investors need to know about receiving split shares and dividends from Nvidia.
Stay up to date with news about Nvidia and other potential investments with the Market Minute Newsletter.
Why is Nvidia splitting its shares?
Nvidia’s upcoming stock split comes after a roughly 5x share price increase since the last split, which traded on June 21, 2021. Investors do not receive any additional value or voting rights, but offer employees and private investors more flexibility to invest in the shares. company with more accessible prices. Typically, a stock split is viewed by investors as a bullish signal, assuming that management sees a promising financial future for the company, even though it does not represent a material change in business operations.
Dates to know for Nvidia’s stock split and dividend
Stock split
-
June 6, 2024, 4:00 PM ET: By then, $NVDA treasury shares to be issued in the split.
-
July 7, 2024, 4:00 PM ET: This is the last trading day for the current float (number of shares) and stock price. Brokers can adjust your account after this time.
-
June 10, 2024, 9:30 am ET: The market opens at 10x float and 1/10th of price at $NVDA.
Dividends
Nvidia pays out dividends every quarter. The increased dividend, which will be at a split-adjusted level at the time of the next dividend, will be issued at $0.01 per share.
-
June 11, 2024, 4:00 PM ET: $NVDA treasury stock is currently considered a shareholder of record and will receive dividends for this quarter.
-
June 28, 2024: Dividends will be paid to eligible shareholders on this date.
A financial advisor can help you determine if $NVDA is a suitable investment for your goals. Talk to a financial advisor today.
How the split will work
For all shares of $NVDA you own before 4:00 PM ET on June 6, you will receive nine additional shares after the market closes on June 7. The closing share price on that day is divided by ten to obtain the new share price. Your shares will be worth the same value before and after the split. It’s just another way to divide your share of ownership. The shares will trade at the split-adjusted price on the open market on Monday, June 10, 2024.
For example, if the stock closes at $1,150 on June 7, it would hypothetically open at a price of $115 (but with 10 times the number of shares in issue).
You will likely see adjustments to your trading account sometime between the market close on June 7 and the market open on June 10. You do not need to take any action to split your shares.
Nvidia’s stock split history
Nvidia went public in 1999. This will be the sixth stock split since then.
Splits include:
-
10-06-2024: 10-for-1
-
20-07-2021: 4-for-1
-
9/11/2007: 3-for-2
-
7-4-2006: 2-for-1
-
12-09-2001: 2-for-1
-
27-06-2000: 2-for-1
To stay up to date with stock market and economic news, receive the Market Minute newsletter in your inbox.
What else is in store for Nvidia investors?
Nvidia’s annual shareholder meeting is scheduled for June 26, 2024 at 9 a.m. CT. Investors may be able to vote for their shares by proxy through their brokerage firm. You can access the annual shareholder meeting and a recording of quarterly results on Nvidia’s investor relations page.
Sources
Photo credit: ©iStock.com/SvetaZi
This is not an offer to buy or sell any security or interest. All investments involve risks, including loss of principal. This article IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO PROVIDE LEGAL ADVICE, TAX ADVICE, ACCOUNTING ADVICE OR FINANCIAL ADVICE. Before making any final decisions or implementing any financial strategy, you should consider seeking additional information and advice from your accountant or other financial advisors who are fully aware of your individual circumstances. SmartAsset’s services are limited to referring users to third-party advisors who are registered or chartered as fiduciaries (“Advisor(s)”) with a regulatory agency in the United States who have elected to participate in our matching platform based on information collected from users through our online platform. questionnaire. We do not manage client money or hold assets in custody, we help users connect with relevant financial advisors.
The post Nvidia Stock Split: What Investors Need to Know appeared first on SmartReads by SmartAsset.
