Though the quarterly yield is hardly a top reason for investing in the semiconductor giant, there is always something profoundly disappointing about Nvidia (NASDAQ: NVDA) paying out dividends to its investors.
The situation was much the same on April 2 – the latest dividend date – as the stock yield amounted to just one cent ($0.01) per share. This means that investors who purchased $1,000 worth of NVDA equity at the start of 2025 would have received 7 cents ($0.07).
Furthermore, for an investor to receive $1 in Nvidia dividends, they’d have to own 100 shares worth $10,576, given the NVDA’s press time price of $105.76.
Still as low as the 0.036% annual yield is, the semiconductor giant’s biggest shareholders have, nonetheless, enjoyed a major payday. Nvidia CEO Jensen Huang, for example, owns 860 million NVDA shares per the most recent available information, meaning he received $8.6 million on April 2.
Should investors sell Nvidia stock in 2025?
The latest dividend payment has, arguably, been more disappointing than most. Nvidia justifies its low yield by being a growth-focused company and while investors could find solace in the firm’s 900% stock market rise between late 2022 – the start of the artificial intelligence (AI) boom – and the end of 2024, the situation has shifted.
Specifically, NVDA stock is down 21.25% year-to-date (YTD) and is changing hands at $105.76.
Furthermore, between the recessionary fears, Nvidia shares mostly falling in recent months, and the fears that the data center buildup may have created a bubble ready to burst, investors may be running out of reasons to buy and hold the chipmaker’s equity in the short and mid-term.
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