Benzinga - Shares of Nvidia Corporation (NASDAQ: NVDA), a leading GPU company, has been on a roll in the past six months, climbing more than 110% from November lows, with 66% of those gains given to investors in 2023 alone.
The Street was thrilled with the company's recent earnings, showing strong financial performance driven by its dominance in the gaming and AI markets.
While many investors are excited about Nvidia's growth prospects — like known investor Jim Cramer, who named his dog Nvidia — others are more interested in the company's dividend yield, which is 0.07%, and how much of the stock they would need to own to yield $200 (or $2,400 per year) in Nvidia dividends.
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For an investor interested in knowing how much stock they’d need to own to yield $200 per month would have to multiply 200 by 12, with the 12 being each month in the year.
With $2,400 being the result, the investor would then divide 2,400 by Nvidia’s dividend yield, which is 0.07%.
It would look something like this: 2400/0.007.
With that being said, an investor would need to own $342,857.14, or 1,445.13 shares of Nvidia to yield $200 per month in dividends.
Conversely, if they only wanted to yield $100 per month, the investor would need to own $171,428.57 or 720 shares of the chip maker.
Though it should be known that the dividend yield can change on a rolling basis as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change. For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
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