In case of Nvidia (NASDAQ: NVDA) was not yet popular among investors, now the semiconductor giant is luring income seekers by increasing its quarterly dividend payments. The payouts still won’t be huge in percentage terms, but Nvidia’s cash payouts will be a nice bonus for long-term shareholders.
In addition to the dividend increase, Nvidia has made another major announcement that may confuse some investors. However, there’s no need to worry as the upcoming changes won’t reduce the incentive to buy and hold Nvidia stock.
A small return gets a big raise
Amid a slew of positive data for the first quarter of 2025, Nvidia’s dividend increase announcement may have been lost on some investors. Still, income harvesters shouldn’t downplay the significance of Nvidia’s upcoming quarterly dividend increase.
To summarize the announcement, Nvidia will increase its quarterly dividend payout per share by 150%, from $0.04 to $0.10. There’s still time to get in, as Nvidia’s shareholders of record on June 11 will be paid on June 28 (although depending on your broker, it may take a few extra days for the cash payment to appear in your account).
What about Nvidia’s stock split?
That’s all simple enough, but there’s another simultaneous announcement from Nvidia that may complicate things. In concrete terms, Nvidia is implementing a 10-for-1 stock split. If you are a known Nvidia shareholder on June 6, you will receive nine additional Nvidia shares after the market closes on June 7; trading on a split-adjusted basis will begin on June 10.
For example, Nvidia’s share price could be cut from about $1,160 to $116. What is known for certain, however, is that the increased dividend payment after the split will be $0.01 per share instead of $0.10 per share.
A cent per share per quarter doesn’t sound like much, and the future annual dividend yield will still be minuscule (0.0034%). Still, the quarterly per-share payment will at least be 150% better than the $0.004 it would have been post-split without Nvidia’s dividend increase.
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David Moadel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
What is the dividend payout for Nvidia stock? was originally published by The Motley Fool
