Nvidia (NASDAQ: NVDA) has increased its dividend payout, further strengthening the company’s appeal to investors seeking both growth and income.
The chipmaking giant announced the sharp increase on May 20 alongside its blockbuster fiscal first-quarter earnings results.
Under the new plan, Nvidia will pay a quarterly dividend of $0.25 per share on June 26, 2026, representing a massive 2,400% jump from the previous quarterly payout of $0.01 per share distributed in April.
For investors holding 100 shares of Nvidia stock, the upcoming payout will amount to $25. On an annualized basis, shareholders with 100 shares would earn $100 per year if the company maintains the new dividend rate of $1 per share annually.
To qualify for the payment, investors must own Nvidia shares before the June 4, 2026, ex-dividend date.
As of press time, Nvidia stock closed at $215.33 after declining 1.90% during the trading session.
At the current share price, Nvidia’s dividend yield stands at about 0.46%, below the technology sector average of 1.37%.
Notably, Nvidia’s forward payout ratio remains low at 8.13%, giving the company ample flexibility to continue investing in expansion and research while increasing shareholder returns.
The dividend increase marks a notable shift for Nvidia, which has historically prioritized aggressive growth investments and share buybacks over large cash payouts.
The company has nevertheless raised its dividend for three consecutive years while maintaining a quarterly distribution schedule.
Nvidia AI dominance
Overall, the dividend boost also comes as Nvidia maintains its dominance in the artificial intelligence (AI) and semiconductor markets through its data center and graphics processing chips.
To this end, the technology giant posted record revenue of $81.62 billion for the quarter ended April 26, 2026, up 85% year-over-year and above analyst estimates of $78.8 billion.
Data center revenue climbed 92% to $75.2 billion on booming AI demand, while adjusted earnings per share reached $1.87, beating expectations of $1.76.
