Nvidia (NASDAQ: NVDA) currently pays a dividend of $0.04 per share annually, which translates to a penny per share each quarter. To achieve $500 in annual dividend income, an investor would need to own 12,500 shares, costing nearly $1.8 million at the current share price of approximately $142.
Despite the high cost for dividend seekers, Nvidia has seen substantial gains, with an average increase of 75% over the past five years. Its forward-looking price-to-earnings (P/E) ratio is 34, below its five-year average of 40.
Industry analysts note Nvidia’s growth in the data center chip market, especially for applications in artificial intelligence and cryptocurrency. However, Nvidia was not featured in the Motley Fool Stock Advisor‘s latest list of recommended stocks.
