This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

In case Nvidia (NASDAQ: NVDA) wasn't already beloved among investors, now the semiconductor giant is enticing income seekers by increasing its quarterly dividend payouts. The distributions still won't be huge on a percentage basis, but Nvidia's cash payouts will be a nice bonus for long-term shareholders.

Nvidia made another important announcement along with the dividend hike which may confuse some investors. There's no need to worry, though, as the upcoming changes won't diminish the incentive to buy and hold Nvidia stock.

A small yield gets a big raise

Amid a slew of positive first-quarter fiscal 2025 data points, Nvidia's dividend raise announcement may have gotten lost in the shuffle for some investors. Yet income harvesters shouldn't downplay the significance of Nvidia's upcoming quarterly dividend hike.

To recap the announcement, Nvidia will increase its quarterly per-share dividend distribution by 150% from $0.04 to $0.10. There's still time to get in, as Nvidia's shareholders of record on June 11 will be paid on June 28 (though, depending on your broker, it might take a few extra days to see the cash payment show up in your account).

What about Nvidia's stock split?

That's all simple enough, but there's another, concurrent announcement from Nvidia that might complicate things. Specifically, Nvidia is enacting a 10-for-1 forward stock split. If you're an Nvidia shareholder of record on June 6, you'll receive nine additional Nvidia shares after the market closes on June 7; trading on a split-adjusted basis will begin on June 10.

So, for example, the Nvidia share price might be reduced from roughly $1,160 to $116. What's known for certain, though, is that the increased dividend distribution will be $0.01 per share after the split rather than $0.10 per share.

A penny per share per quarter doesn't sound like much, and the forward annual dividend yield will still be minuscule (0.0034%). Still, at least the quarterly per-share payment will be 150% better than the $0.004 it would have been, post-split, without Nvidia's dividend hike. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What is the dividend payout for Nvidia stock? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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David Moadel has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

From not-so-transitory inflation to geopolitical strife and supply chain disruptions, anxious investors have had plenty of excuses to push the Nasdaq Composite (NASDAQINDEX: ^IXIC) lower in 2022. Indeed, as the tech-heavy index sags 30% year to date, financial traders may wonder whether this, too, shall pass.

While it's never 100% safe to invest in anything, true contrarians should view the current tech wreck as a prime buying opportunity. A post-Thanksgiving attitude of gratitude, fortified with an understanding of what's rattling the markets in the first place, could provide the emotional wherewithal to stock up when stocks are down.

COVID-19 concerns return

When Chinese President Xi Jinping secured an unprecedented third term, the Nasdaq buckled as traders collectively winced at the thought of restrictive policies that would linger longer. Those fears may have been vindicated recently as Beijing enacted a fresh wave of lockdowns amid reports of new COVID-19 cases.

This isn't the place to debate whether Xi's latest restrictions are justified, as China faces nearly 40,000 new cases in a single day. What's known for certain, though, is that the populace is getting restless, with protests erupting in Beijing and surrounding cities.

There's already been collateral damage in the form of disruptions at the production facility at Apple components supplier Foxconn in the Chinese city of Zhengzhou. The upshot is a potential current-quarter iPhone production shortfall of 5% to 10%. This development prompted a single-day sell-off in Apple stock, which led the Nasdaq lower. Yet, panic need not be your knee-jerk reaction as this certainly hasn't been China's first coronavirus lockdown and it won't be the last -- and every restriction in the past has been lifted sooner or later, leading to a relief rally in well-known technology names.

Bullard's bully pulpit

The only thing that may be as reliable as China's on-again, off-again zero-COVID policy is the hawkish stance of Federal Reserve Bank of St. Louis President James Bullard. He's among the most vocal proponents of aggressive interest rate hikes, and he's never loath to put a damper on dovish market sentiment with a handful of choice words.

That's the power of a high central-bank position -- yet, you as an investor have the power to choose your response. As you may recall, Bullard sent shock waves though the financial markets with the pronouncement that the Fed may need to hike its benchmark interest rate all the way up to 7% to keep inflation under control.

Now, Bullard's turning up the heat again with statements like, "We've got a ways to go to get restrictive." Before you pull out your "Don't fight the Fed" banner, however, bear in mind that one hawk doesn't represent the central bank as a whole.

The most recently released meeting notes from the Fed's Federal Open Market Committee did, in fact, indicate that Fed officials collectively expect smaller interest rate increases to "soon be appropriate." Moreover, while the Federal Reserve "is clearly not finished yet," a 50-basis-point rate hike in December "sounds very reasonable" in the committee's estimation.

Safety in numbers

Besides, if China's zero-COVID policy and Bullard's statements contributed to more reasonable valuations for Nasdaq components, contrarians should celebrate, not hesitate. Ask yourself: Could I have imagined in mid-2021 that tech-sector highfliers such as these would in 2022 gift me with price-to-earnings ratios at their current levels?

• Alphabet: 19.1
• Meta Platforms: 10.46
• Intel: 8.88
• Netflix: 25.26
• Cisco Systems: 17.36
• Micron Technology: 7.19
• Qualcomm: 10.48

If you're obsessed with income as much as value, feel free to investigate Intel and Qualcomm for their generous dividend yields. While you're doing your due diligence, remember that these relatively low tech-market valuations are brought to you courtesy of scary headlines and extrinsic shocks. Without them, after all, there can be no "buy low" piece of the "buy low, sell high" puzzle. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Down 30%, is it safe to invest in the Nasdaq right now? appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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David Moadel has positions in Intel. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Cisco Systems, Intel, Meta Platforms, Netflix, and Qualcomm. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short January 2025 $45 puts on Intel. The Motley Fool Australia has recommended Alphabet, Meta Platforms, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.