How High is NVDA’s Dividend Yield? Worth Chasing Dividends?
8/26/2025 02:54am
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The deep research logic is organized as follows:
Okay, let's tackle the user's question about NVDA's dividend yield and whether it's worth chasing for dividends. First, I need to check the provided references to gather the necessary data.
Looking at the references, Number 1 shows that NVDA's dividend yield as of 2025-08-25 is 0.02%. That's extremely low. Reference 2 mentions an annual dividend of $0.04 per share, which aligns with the yield calculation since the last price is $181.46. The yield is indeed 0.02% ($0.04 / $181.46).
References 3, 4, and 5 also confirm the low yield, around 0.02-0.023%. The payout ratio is mentioned as 1-1.28%, which is very low, indicating that NVDA is reinvesting most of its earnings into growth rather than paying out dividends.
The user is interested in dividend chasing, so the key points here are the extremely low yield and the company's focus on growth. NVDA's dividend history shows it's increased dividends for 2 consecutive years, but the absolute amounts are tiny. The user might be looking for income, but with such a low yield, it's not significant.
Also, considering the user's profile, they're into short-term gains and technical analysis. NVDA's stock price is high, and the dividend is negligible. The company's growth prospects in AI and data centers are more relevant for capital gains rather than income.
I should structure the answer to highlight the low yield, the reasons behind it (growth focus, low payout ratio), and why it's not worth chasing for dividends. Maybe also mention alternative strategies like ETFs if the user is interested in tech dividends.
Need to make sure all data points are cited correctly using the references provided. Also, follow the format requirements with tables and visualizations where needed. The user's interest in AAPL might not directly relate, but the focus on dividend yield is the key here.
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### **Conclusion**
NVIDIA (NVDA) currently offers an **extremely low dividend yield of 0.02%** , making it **unattractive for dividend-focused investors**. The company prioritizes reinvesting earnings into growth initiatives, particularly in AI and data center infrastructure, over returning capital to shareholders through dividends. While NVDA has increased its dividend for 2 consecutive years, the absolute payout remains minimal, and the yield is far below the threshold for meaningful income generation.
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### **Analysis**
#### **1. Dividend Yield Overview**
| Metric | Value (as of 2025-08-25) |
|----------------------------|---------------------------|
| **Dividend Yield (TTM)** | 0.02% |
| **Annual Dividend** | $0.04 per share |
| **Payout Ratio** | 1.28% |
**Key Takeaway**: NVDA’s dividend yield is **negligible** compared to the broader market (e.g., S&P 500 average yield ~1.8%). The company’s ultra-low payout ratio (1.28%) reflects its focus on reinvesting profits into high-growth areas like AI chips and data centers .
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#### **2. Why NVDA’s Dividend Yield is Low**
- **Growth-Oriented Business Model**: NVDA is a **high-growth tech company** with a dominant position in AI hardware. Its capital is better utilized in R&D (e.g., Blackwell architecture GPUs) and acquisitions (e.g., robotics startups) rather than dividend payments .
- **Minimal Shareholder Returns**: NVDA’s total shareholder yield (dividends + buybacks) is ~1.1%, with buybacks accounting for the majority . This aligns with its strategy to maximize long-term value rather than provide immediate income .
- **Regulatory and Market Risks**: NVDA faces headwinds like U.S.-China trade restrictions (e.g., 15% revenue-sharing fee for chip sales to China) , which could further constrain its ability to prioritize dividends.
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#### **3. Is NVDA’s Dividend Worth Chasing?**
| Metric | NVDA (2025) | Average Dividend Stock |
|----------------------------|--------------|-------------------------|
| Dividend Yield | 0.02% | ~1.8% |
| Annual Dividend | $0.04 | ~$1.00 |
| Payout Ratio | 1.28% | ~50% |
**Conclusion**: NVDA’s dividend is **not worth chasing** for income-focused investors. The yield is too low to generate meaningful cash flow, and the company’s focus on growth over dividends makes future increases unlikely in the short term.
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#### **4. Alternatives for Dividend Investors**
If you’re interested in tech stocks with higher yields, consider:
| Stock/ETF | Dividend Yield | Focus |
|------------------|----------------|---------------------------------|
| NVDA Yield Shares ETF | 14.6% | Leverages NVDA’s upside via derivatives |
| Intel (INTC) | ~3.5% | Established semiconductor giant |
| Texas Instruments (TXN) | ~3.0% | Diversified semiconductor leader |
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### **Final Takeaway**
NVDA’s dividend yield is **irrelevant for income seekers** but **strategically logical** for a high-growth tech company. If you’re focused on **capital appreciation** in AI and semiconductors, NVDA remains a compelling pick. However, for dividend income, look elsewhere.
|code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code|
|---|---|---|---|---|---|---|
|NVDA|NVDA.O|Nvidia|20240825|0.10506817518272245||185|
|NVDA|NVDA.O|Nvidia|20240826|0.1056580812811039|0.017524118298276135|185|
|NVDA|NVDA.O|Nvidia|20240827|0.1056580812811039|0.017272798129384252|185|
|NVDA|NVDA.O|Nvidia|20240828|0.1056580812811039|0.017642703606400766|185|
|NVDA|NVDA.O|Nvidia|20240829|0.11378562599503499|0.018845990305298068|185|
|NVDA|NVDA.O|Nvidia|20240830|0.11378562599503499|0.018564966071877357|185|
|NVDA|NVDA.O|Nvidia|20240831|0.11378562599503499||185|
|NVDA|NVDA.O|Nvidia|20240901|0.11378562599503499||185|
|NVDA|NVDA.O|Nvidia|20240902|0.11378562599503499||185|
|NVDA|NVDA.O|Nvidia|20240903|0.11433770293921401|0.020519444444444444|185|