Nvidia's Dividend Hike Falls Short of Expectations Amid Buyback Focus

Nvidia's recent dividend hike has left income investors underwhelmed. The company raised its quarterly payout from $0.01 to $0.25 per share, a staggering 2,400% increase.

On paper, this looks impressive, but in practice, the dividend yield is still relatively low at around 0.44%. For context, a $10,000 investment made on the day ChatGPT launched would be worth more than $132,000 today, generating approximately $44 in annual dividend income.

The company's focus remains on share buybacks, with roughly $99 billion remaining available for repurchases after adding an $80 billion authorization in May. This dwarfs the quarterly dividend commitment of around $6 billion.