By Christopher Ruane
Publication Date: 2026-01-09 07:24:00
Ever had the experience of missing out on something? Looking at the growth of Nvidia (NASDAQ: NVDA) I am sure a lot of us have had the sense of a missed opportunity. Nvidia shares have soared in recent years.
Stellar value creation
In fact, over the past five years, the shares have moved up in value by 1,306%.
So, excluding currency movements, someone who invested £5,000 in Nvidia in January 2021 would now be sitting on a shareholding worth over £70,000. Wow!
For simplicity I exclude currency movements but there has been some volatility in the exchange rate of the pound and dollar in the past few years, Currency movements can work for or against someone depending on what way exchange rates move. They are always a risk to consider when investing in overseas shares denominated in a foreign currency.
Dividend growth potential
As for dividends, the capital gain on Nvidia shares in the past five years has been so good that it seems almost greedy to think about them. But in fact, Nvidia does pay dividends.
With its 0.02% yield, the shareholder payout may seem nothing to get excited about. But bear in mind that someone who invested at a much lower price five years ago would now be earning a dividend yield of around 0.3%.That would come out to around £14 a year from the £5,000 investment.
On top of that, given Nvidia’s strong earnings growth, I think the dividend could get much larger in years to come.
The most recent quarterly…