Is Nvidia a Good Opportunity for Divident Investors?

Nvidia continues to be a significant growth player in tech, recently announcing a quarterly dividend of $0.010 per share, with a record date of September 12.

As of now, shares are priced at $132.63, reflecting a 7.51% weekly increase and an impressive 179.05% gain year-to-date.

A $1,000 investment would purchase seven shares for about $928, yielding an annual payout of roughly $0.28—far less than competitors like Qualcomm ($0.85) and Broadcom ($0.53). Unlike these established firms, Nvidia and AMD (NASDAQ: AMD) are heavily invested in high-growth sectors like AI, limiting their dividends.

Despite the modest dividend, Nvidia can still enhance a diversified portfolio. Currently rated as a ‘Strong Buy’ by 65 analysts, with a 12-month target of $149.54, Nvidia presents a potential 12.53% upside.

If AI bubble fears do not materialize, demand for Nvidia’s innovations could sustain stock price increases. For income investors, Nvidia offers a chance to capitalize on growth, allowing them to reinvest gains into more stable assets like blue-chip stocks.

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