Nvidia raises dividend to 0.03%, falling short of competitors

From Morningstar: 2024-06-07 06:14:00

Nvidia’s market value now surpasses $3 trillion, making it the world’s second-largest company. Despite raising its dividend to 0.03%, it still falls short of Alphabet and Meta’s yields. Morningstar Metrics for Nvidia include a Fair Value Estimate of $1,050, a 3-star Morningstar Rating, Wide Moat Rating, and Very High Uncertainty Rating.

Nvidia previously offered a 2% yield when it initiated dividends in 2012, outpacing the market and tech peers. However, modest dividend increases couldn’t keep up with the stock’s price growth. Analysts predict Nvidia’s yield will remain minimal due to management’s allocation strategy focusing on stock buybacks, not dividends. No further dividend increases are expected before 2030.



Read more at Morningstar: Nvidia Raised its Dividend – But There’s a Twist