Does Nvidia Pay Dividends in 2024? 150% Growth in NVDA Payouts

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Does Nvidia Pay Dividends?

Yes, Nvidia (NVDA) pays dividends. But when and how much? Learn in this article.

Nvidia is one of the biggest and most talked-about tech companies in the world, part of the Magnificent Seven tech companies alongside Amazon (AMZN), Alphabet (GOOGL), Meta (META), Tesla (TSLA), Microsoft (MSFT), and Apple (AAPL).

Some of its key products include semiconductors, computer hardware, graphics processing units (GPUs), software, consumer electronics, cloud computing, artificial intelligence, and video games.

Jensen Huang is the current president and CEO, and Bill Dally is the chief scientist. As of May 2023, Nvidia was the third most valuable company by market cap, with a valuation of about $2.618 trillion.

Nvidia Market Cap History

This was significantly ahead of competitors such as Intel (INTC), AMD (AMD), and Qualcomm (QCOM) but was still below Microsoft. At the time of writing,

Nvidia’s share price was trading at about $1,064.

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Key Takeaways

  • Nvidia is one of the biggest tech companies in the world, producing semiconductors, GPUs, computer hardware, and consumer electronics.
  • It pays dividends quarterly in March, June, September, and December. The last dividend payment before the split was $0.04 per share, paid on March 27, 2024.
  • Nvidia announced a ten-for-one forward stock split effective June 7, 2024.
  • Nvidia raised its quarterly cash dividend by 150% to $0.01 per share on a post-split basis.
  • Nvidia’s dividend is considerably low compared to other tech companies such as IBM, Qualcomm, and Texas Instruments.
  • However, its earnings and share price have skyrocketed in the past several months, confirming Nvidia’s solid stance among tech leaders.

How Often Does Nvidia Pay a Dividend?

When does Nvidia pay dividends? Nvidia usually pays dividends quarterly, in March, June, September, and December every year.

The last Nvidia dividend was $0.04 per share, paid on March 27, 2024. It was announced on February 21, 2024, with an ex-dividend date of March 5, 2024.

On May 22, Nvidia NVIDIA increased its quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock.

However, regarding the announced 10-to-1 stock split, the actual quarterly dividend that will be paid on June 28, 2024, will be $0.01 per share.

Why Is Nvidia’s Dividend Still Low?

Despite the recently announced 150% dividend increase, Nvidia’s dividend per share is certainly on the lower side compared to its tech peers. Other major tech companies such as Amazon, IBM, Texas Instruments, and Microsoft pay significantly higher dividends, which could put Nvidia at a disadvantage for some dividend-focused investors.

However, one key reason Nvidia’s dividends are low at the moment is that it is far more focused on growth and reinvesting in the business to drive expansion. As such, research and innovation, new income-generating avenues, a larger client base, and well-thought-out acquisitions are likely to continue to take priority.

Similarly, maintaining its current strong balance sheet and net cash could also continue to be a higher focus than increasing its dividends.

This means that most of Nvidia’s current profits are being reinvested in the business instead of being used to pay outsized dividends.

Although the company certainly has room to be a bit more generous with its dividend, investors have immense opportunity to make money by trading the NVDA shares as they appreciate.

Furthermore, Nvidia also offers share repurchases as a way of compensating for these low dividends, which investors sometimes prefer.

Nvidia (NVDA) 5-Year Performance

Nvidia’s Dividend History

Nvidia’s dividend history is long and varied. It started in September 2013 with a $0.075 per share payment. In December of that year, it increased to $0.085 per share, and in June 2015, it raised it to $0.0975.

By December 2015, it was $0.115 per share before inching up a bit more to $0.14 in December 2016. By December 2017, Nvidia’s dividend increased further to $0.15, whereas by December 2018, it was $0.16 and stayed the same until mid-2021.

According to the firm’s stock split in July 2021, Nvidia issued three new shares for every one outstanding (a four-for-one split).

Therefore, although quarterly dividends have been $0.04 per share since September 2021, the actual level has remained the same until recently.

Nvidia’s Dividend Growth

According to its latest earnings results, Nvidia is increasing its quarterly cash dividend by 150% from $0.04 per share to $0.10 per share of common stock.

The increased dividend is equivalent to $0.01 per share on a post-split basis and will be paid on June 28, 2024, to all shareholders of record on June 11, 2024.

Over the years, Nvidia has also issued a number of share buybacks, with the most recent of $7.74 billion in April 2024, $2.659 billion in January, and the previous one of $3.807 billion in October 2023.

Nvidia's Dividend Per Share

Nvidia’s Dividend Yield

The dividend yield ratio compares a company’s share price with the dividend it is currently paying per share. This can help investors decide whether it is worth spending a certain amount on a company’s shares for the current returns or payoffs that they provide.

Currently, Nvidia’s dividend yield is 0.01%. Although this might seem low, it is a testament to Nvidia’s soaring share price in the last several months, which has made the dividend and dividend yield seem much lower in comparison.

Typically, dividend yields ranging from 2% to 6% are considered good for most companies. However, in many cases, the dividend yield for a stock also rises when the share price falls, which could be alarming for some investors.

Nvidia’s Dividend Payout

The dividend payout ratio indicates how much of a company’s income it pays out as dividends compared to its total revenue. As such, it usually tells investors whether a company has a good margin or more room to grow when it comes to increasing its dividend payments without impacting total earnings or other operations.

As of May 2024, Nvidia’s dividend payout ratio was 0.52%, which is considered low. Usually, a good or comfortable dividend payout ratio is between 30% and 50%. This means that the Nvidia stock dividend is an exception, with exceedingly high earnings compared to its dividends.

Will Nvidia Steadily Increase Its Dividends?

Nvidia has significant opportunities and room to grow its dividend, should it choose to do so, due to its earnings being several times higher than its current dividends and the company’s generally good performance in the last few years.

However, given the company’s past dividend trends, it is unlikely that Nvidia stock dividend hikes will occur regularly.

The company has also been vocal about prioritizing research and innovation, creating new streams of income, and growing its market and customer base. This is mainly done through reinvesting profits into the business.

4 Tech Stocks That Pay Better Dividends

MicrosoftIBMQualcommTexas Instruments

Microsoft is another Magnificent Seven tech stock and one of the highest-valued companies in the world at the moment. It manufactures computer software, consumer electronics, artificial intelligence, social networking services, video games, and more. Some of its best-known brands are Microsoft 365, Xbox, and Visual Studio.

Microsoft also pays dividends quarterly, in March, June, September, and December. Its last dividend payment was $0.75 per share, paid on March 14, 2024.

IBM is another major tech company renowned for its superior research facilities and high number of US patents. The company’s offering includes robotics, blockchain, consulting, computer hardware, quantum computing, and artificial intelligence services.

IBM pays dividends four times a year: in March, June, September, and December. The last payment was a cash dividend of $1.67 per share, paid on March 9, 2024.

Qualcomm is a software, wireless technology, and semiconductor manufacturer that has been key to wireless cell phone technology, such as 4G and 5G, in the past several decades. Some of its key products include MediaFLO, OmniTRACS, Qchat, Gobi, and BREW.

Qualcomm pays dividends quarterly in March, June, September, and December. The last dividend, $0.80 per share, was paid on 21 March 2024.

Texas Instruments is a US semiconductor giant that also manufactures and designs integrated circuits. Some of its key products are analog electronics, digital signal processors, and embedded processors.

The company pays dividends four times a year: in February, May, August, and November. The latest payment was $1.30 on 13 February 2024.

What Are Dividends?

Dividends are remuneration paid to a company’s shareholders or investors from its profits over a certain time period. They are usually seen as the payoff for investors keeping a particular stock for a while, usually for several years. Dividends can be paid in a variety of ways, such as stock, cash, property, and more.

Companies usually pay dividends yearly but can also choose to make payments every quarter or every six months. This decision varies entirely from company to company, depending on what they feel might work best for themselves and what their shareholders might prefer.

Why are They Important to Investors?

Dividends matter to investors as they tend to view them as extra income that can be used for emergencies, retirement, reinvestment, or simply as a liquid cash asset or nest egg. From the company’s point of view, dividends attract and reward investors, especially long-term ones, who may have stuck with the company through thick and thin and not given in to market volatility.

The Bottom Line

Nvidia is one of the biggest and most highly valued tech companies at the moment. It is making considerable progress in areas such as semiconductors and artificial intelligence.

It pays dividends quarterly in March, June, September, and December every year. In May 2024, the company declared a 150% increase in its quarterly dividends up to $0.1 (or $0.01 after a 10-to-1 stock split).

While this might still be considered low compared to its other tech peers, Nvidia’s earnings and share price have been soaring lately. Most of the company’s profits are being reinvested in the business to boost expansion, multiple revenue streams, and its strong market leader position.

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Indrabati Lahiri
Financial Writer & Editor
Indrabati Lahiri
Financial Writer & Editor

Indrabati has over four years of experience as a financial reporter and editor, covering business, commodities, and macroeconomics. While contributing to Techopedia, she’s currently working as a Business Reporter at Euronews. Her articles can be found in other online publications, including Capital.com and IBM, among others. Indrabati holds an MSc in Investment Banking and an MA in English.