NVIDIA Corp. : NVDA-US: Dividend Analysis : November 24th, 2017 (record date) : By the numbers : November 23, 2017

Our analysis is based on comparing NVIDIA Corp. with the following peers – Advanced Micro Devices, Inc., Intel Corporation, Texas Instruments Incorporated, Ambarella, Inc., QUALCOMM Incorporated, STMicroelectronics NV ADR RegS and Microsoft Corporation (AMD-US, INTC-US, TXN-US, AMBA-US, QCOM-US, STM-US and MSFT-US).

NVIDIA Corp.’s dividend yield is 0.33 percent and its dividend payout is 13.90 percent. This compares to a peer average dividend yield of 1.91 percent and a payout level of 46.73 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 92 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to October 31, 2017), NVDA-US paid a high quality dividend, which represents a yield of 0.26% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality and 2 were medium quality.
  • The ending cash balance, with a dividend coverage of 19.39x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to October 31, 2017), NVDA-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 8.79x), investing cash flow (coverage of 2.85x), issuance cash flow (coverage of -7.99x) and twelve-month prior cash (coverage of 20.46x), for a total dividend coverage of 20.39x.

NVDA-US’s issuance cash flow includes outflows from net debt repayment (coverage of -3.17x) and net share buybacks (coverage of -3.03x). Thus, the total coverage including share buybacks is 23.41x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2013-01-31 2014-01-31 2015-01-31 2016-01-31 2017-01-31 Latest
Dividend Yield (%) 0.61 2.05 1.65 1.35 0.4 0.33
Dividend Payout (%) 8.33 41.89 30.36 36.57 18.87 13.9

A complete list of metrics and analysis is available on the company page.

Company Profile

NVIDIA Corp. designs and manufactures computer graphics processors, chipsets, and related multimedia software. It operates through the following segments: Graphics Processing Unit and Tegra Processor. The Graphics Processing Unit segment includes sales of the company’s GeForce discrete and chipset products that supports desktop and notebook PCs plus license fees from Intel and sales of memory products. The Tegra Processors segment provides processors that deliver superior visual and multimedia experience on tablets, smart phones and gaming devices while consuming minimal power. The company was founded by Jen-Hsun Huang, Chris A. Malachowsky and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA.


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