Here's a Crash Course on Nvidia's Dividend (and Why It's So Small) - LongPort

This article by financial analyst examines Nvidia's dividend strategy and explains why the AI chip leader maintains an intentionally modest dividend despite massive cash generation.

Nvidia currently pays just $0.01 quarterly ($0.04 annually) with a negligible 0.02% yield, representing only 1% of earnings. This deliberate approach allows maximum flexibility for reinvestment in AI platforms like Blackwell while the company experiences hypergrowth. Instead of dividends, Nvidia prioritizes share buybacks, recently adding $60 billion to repurchase authorization and returning $24.3 billion through buybacks in recent quarters.

• Nvidia's tiny dividend yield reflects strategic capital allocation focused on growth reinvestment rather than income distribution
• Share repurchases serve as the primary method for returning cash to shareholders, with billions deployed quarterly
• Future dividend increases remain possible but secondary to reinvestment needs during the current AI boom cycle
• Management maintains optionality by avoiding large fixed dividend commitments while revenue grows 56% year-over-year