While Nvidia (NASDAQ: NVDA) stock continues to experience heightened volatility, weighing on its valuation, the company remains consistent in rewarding investors through dividend payments.
Notably, the technology giant is a dominant force in the artificial intelligence (AI) sector, with its semiconductors translating into blockbuster earnings.
However, Nvidia has not been immune to the broader market downturn, which has put pressure on its stock. As of press time, NVDA was trading at $112.69, up nearly 2% on the day. However, the chipmaker has tumbled more than 18% year-to-date.
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Ahead of the market opening on March 10, NVDA shares showed further weakness, slipping 2.44% to $109.94.
Overall, at its current valuation and price movement, Nvidia’s stock is trailing behind the AI-driven rally of recent years. However, long-term shareholders continue to benefit from the company’s steady dividend payouts.
Nvidia’s next dividend payout
According to the latest dividend schedule, Nvidia’s next ex-dividend date is March 12, 2025. Investors who hold NVDA stock before this date will receive a $0.01 per share dividend, payable on April 2, 2025. This continues Nvidia’s tradition of modest quarterly payouts, offering a 0.04% annual dividend yield at current stock prices.
Although the company has maintained a consistent quarterly dividend payment, the payout has decreased in recent quarters. Specifically, Nvidia cut its quarterly dividend to $0.01 per share from $0.04 starting in mid-2024.
Given Nvidia’s strong financials and dominance in AI-driven computing, some investors may hope for a dividend increase to align with other technology players.
Notably, as of March 2025, the semiconductor giant has maintained a 12-year streak of dividend payments since 2012. With a dividend yield of just 0.03%, it falls far below the sector average of 0.696%. The company maintains a payout ratio of 0.90%, indicating that it prioritizes reinvesting nearly all of its earnings into growth rather than distributing them to shareholders.
NVDA stock’s long-term opportunity
Meanwhile, Nvidia’s fundamentals present an opportunity for long-term growth, provided interest in AI remains strong. Some of the company’s growth potential lies in its next-generation Blackwell chips, which offer significant improvements over previous models.
These chips deliver four times faster AI training and 20 times cheaper AI inference. While ramping up production has temporarily impacted gross margins, falling to 73% in Q4, this is expected to recover as production efficiencies improve, with the company noting it has received an overwhelming number of orders.
Additionally, Nvidia’s financial growth trajectory remains key in driving investor interest. For instance, in Q4, revenue soared 78% year-over-year, with management forecasting $43 billion in Q1 revenue, representing 65% annual growth.
Given Nvidia’s history of under-promising and over-delivering, actual results could be even stronger, with Blackwell remaining a key driver. At the same time, Wall Street remains confident in NVDA stock, projecting that it is likely to rally and breach the $170 resistance level.
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