NVIDIA Corporation (NASDAQ:NVDA) Plans $0.25 Quarterly Dividend

Key Points

• NVIDIA declared a quarterly dividend of $0.25 per share, payable October 1 to shareholders of record on September 10. The $1.00 annualized dividend represents a 0.5% yield and is well covered by earnings, with a 17.5% payout ratio.
• NVIDIA reported quarterly earnings of $2.22 per share and revenue of $96.22 billion, exceeding analyst estimates of $2.09 EPS and $92.27 billion in revenue. Revenue increased 105.9% year over year.
• Analysts maintain a favorable outlook, with a consensus rating of “Moderate Buy” and an average price target of $311.59, compared with shares opening at $209.66.

NVIDIA Corporation (NASDAQ:NVDA - Get Free Report) announced a quarterly dividend on Wednesday, August 26th. Shareholders of record on Thursday, September 10th will be paid a dividend of 0.25 per share by the computer hardware maker on Thursday, October 1st. This represents a c) annualized dividend and a yield of 0.5%. The ex-dividend date is Thursday, September 10th.

NVIDIA has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 1 years. NVIDIA has a dividend payout ratio of 17.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect NVIDIA to earn $12.59 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 7.9%.

NVIDIA Stock Down 1.6%

Shares of NASDAQ:NVDA opened at $209.66 on Thursday. The firm has a market capitalization of $5.07 trillion, a PE ratio of 32.11, a price-to-earnings-growth ratio of 0.42 and a beta of 2.23. The business has a 50 day simple moving average of $207.61 and a two-hundred day simple moving average of $200.35. NVIDIA has a 1 year low of $164.07 and a 1 year high of $236.54. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA - Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the prior year, the business posted $1.05 earnings per share. The company's revenue for the quarter was up 105.9% on a year-over-year basis. On average, equities analysts predict that NVIDIA will post 8.8 EPS for the current year.

Analysts Set New Price Targets

A number of analysts have weighed in on NVDA shares. Rosenblatt Securities reiterated a "buy" rating and issued a $325.00 target price on shares of NVIDIA in a research note on Monday. Stifel Nicolaus set a $282.00 price target on shares of NVIDIA and gave the stock a "buy" rating in a report on Thursday, May 21st. China Renaissance initiated coverage on shares of NVIDIA in a research note on Friday, June 5th. They issued a "buy" rating and a $319.00 price target on the stock. Melius Research set a $420.00 price objective on shares of NVIDIA in a report on Thursday. Finally, Mizuho set a $315.00 price objective on shares of NVIDIA in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA currently has a consensus rating of "Moderate Buy" and a consensus price target of $311.59.

NVIDIA Company Profile

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company's product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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