Nvidia Raised Its Dividend 2,400%, but a $10,000 Investment Still Pays Just $44 a Year
Earlier this year, Nvidia raised its dividend 25-fold.
Overview
Nvidia (NASDAQ: NVDA) stock's run throughout the artificial intelligence (AI) revolution is the kind of story people talk about like folklore. If you invested in Nvidia on Nov. 30, 2022 -- the day OpenAI released ChatGPT to the public -- shares closed around $16.87 on a split-adjusted basis. Given their current level around $225, that's roughly a 1,230% gain. This would make a $10,000 investment at that time worth more than $132,000 today. That is not a typo.
The problem is Nvidia stock doesn't feel like that multibagger trade anymore. The easy valuation expansion is gone because investors are hunting the next AI breakout candidate. That shift helps explain another headline: back in May, Nvidia raised its quarterly dividend from $0.01 to $0.25 a share -- a 2,400% increase.
Details
While the old dividend payout was a courtesy, the new one looks like an attempt to appeal to a broader shareholder base: pensions, passive income investors, or anyone else who needs a reason to stick around after the initial moonshot rally.
Source
Originally published at www.fool.com.