Nvidia Corporation (NVDA) shares closed higher on Tuesday, continuing a recent upward trend after gaining 3.5% on Monday. The surge comes despite the company facing an antitrust investigation from the U.S. Justice Department, which is reportedly examining Nvidia’s potential dominance in the artificial intelligence chip market. The Justice Department’s antitrust division has contacted Nvidia to inquire about its contracts and partnerships, according to a report by The Wall Street Journal.
The recent buzz surrounding Nvidia has also caught the attention of investors seeking potential dividend income. However, Nvidia’s current annual dividend yield sits at a modest 0.04%, translating to a quarterly dividend of 1 cent per share (4 cents annually).
Despite the low yield, investors are calculating the number of shares needed to achieve specific monthly income goals. To earn $500 per month or $6,000 annually solely from dividends, an investment of approximately $16,215,000 or around 150,000 shares would be required. For a more modest $100 per month or $1,200 per year, you would need $3,243,000 or around 30,000 shares.
To illustrate the calculation, divide the desired annual income ($6,000 or $1,200) by the dividend ($0.04 in this case). Therefore, $6,000 / $0.04 = 150,000 shares ($500 per month), and $1,200 / $0.04 = 30,000 shares ($100 per month).
It is important to note that dividend yield can fluctuate over time as both the dividend payment and stock price are subject to change.
The dividend yield is calculated by dividing the annual dividend payment by the stock’s current price. For instance, if a stock pays an annual dividend of $2 and its current price is $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield decreases to 3.33% ($2/$60). Conversely, a decrease in the stock price to $40 would raise the dividend yield to 5% ($2/$40).
Similarly, alterations in dividend payments can impact the yield. An increase in the dividend would lead to a higher yield, assuming the stock price remains constant. Conversely, a decrease in dividend payments would result in a lower yield.
NVDA shares rose 1.5% on Tuesday to close at $108.10.
