NVIDIA Corporation (NASDAQ:NVDA) Announces Dividend Increase – $0.25 Per Share

NVIDIA Corporation (NASDAQ:NVDA) announced a quarterly dividend on Wednesday, May 20th. Shareholders of record on Thursday, June 4th will be paid a dividend of 0.25 per share by the computer hardware maker on Friday, June 26th. This represents a c) annualized dividend and a yield of 0.4%. The ex-dividend date is Thursday, June 4th. This is a 2,400.0% increase from NVIDIA’s previous quarterly dividend of $0.01.

NVIDIA has raised its dividend by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 1 years. NVIDIA has a payout ratio of 0.7% meaning its dividend is sufficiently covered by earnings. Analysts expect NVIDIA to earn $10.51 per share next year, which means the company should continue to be able to cover its $0.04 annual dividend with an expected future payout ratio of 0.4%.

NVIDIA Trading Up 1.3%

Shares of NASDAQ NVDA opened at $223.47 on Thursday. The stock’s 50 day moving average price is $194.82 and its two-hundred day moving average price is $188.75. NVIDIA has a 52-week low of $129.16 and a 52-week high of $236.54. The stock has a market capitalization of $5.41 trillion, a P/E ratio of 45.61, a PEG ratio of 0.69 and a beta of 2.25. The company has a quick ratio of 3.24, a current ratio of 3.91 and a debt-to-equity ratio of 0.05.

NVIDIA (NASDAQ:NVDA) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 97.37% and a net margin of 55.60%.The firm had revenue of $81.62 billion for the quarter, compared to analysts’ expectations of $78.42 billion. During the same quarter in the prior year, the firm posted $0.81 earnings per share. NVIDIA’s revenue for the quarter was up 85.2% compared to the same quarter last year. On average, analysts anticipate that NVIDIA will post 7.85 earnings per share for the current fiscal year.

Insider Buying and Selling at NVIDIA

In other news, Director Aarti S. Shah sold 19,000 shares of the stock in a transaction that occurred on Thursday, March 19th. The stock was sold at an average price of $176.71, for a total transaction of $3,357,490.00. Following the sale, the director directly owned 36,007 shares in the company, valued at approximately $6,362,796.97. This represents a 34.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Colette Kress sold 20,000 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $174.89, for a total value of $3,497,800.00. Following the sale, the chief financial officer owned 83,060 shares in the company, valued at $14,526,363.40. The trade was a 19.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 906,336 shares of company stock worth $162,802,518. Corporate insiders own 4.17% of the company’s stock.

Hedge Funds Weigh In On NVIDIA

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Diversified Enterprises LLC boosted its stake in NVIDIA by 44.2% during the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock valued at $23,798,000 after purchasing an additional 39,129 shares in the last quarter. PMG Family Office LLC bought a new position in NVIDIA during the 3rd quarter valued at $2,150,000. Oak Ridge Investments LLC boosted its stake in NVIDIA by 2.2% during the 3rd quarter. Oak Ridge Investments LLC now owns 970,860 shares of the computer hardware maker’s stock valued at $181,143,000 after purchasing an additional 20,559 shares in the last quarter. Weaver Capital Management LLC boosted its stake in NVIDIA by 5.5% during the 4th quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares in the last quarter. Finally, Circle Wealth Management LLC boosted its stake in NVIDIA by 16.1% during the 3rd quarter. Circle Wealth Management LLC now owns 107,787 shares of the computer hardware maker’s stock valued at $20,111,000 after purchasing an additional 14,936 shares in the last quarter. 65.27% of the stock is owned by institutional investors.

About NVIDIA

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.