By Todd Shriber, The Motley Fool
Publication Date: 2026-05-25 18:15:00
When it released quarterly results, Nvidia (NASDAQ: NVDA) surprised investors by announcing a 2,400% increase to its dividend, ratcheting up the payout to $0.25 per share per quarter from a measly $0.01 per share.
That takes the semiconductor stock’s dividend yield to 0.4%. While that’s less than half the yield on the S&P 500, it is more in line with yields on other mega-cap stocks and the Nasdaq-100. That index, one in which Nvidia is the largest component, yields 0.4%.
|
Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need. |
An interesting footnote about Nvidia’s enhanced dividend status is that many dividend exchange-traded funds (ETFs) weren’t prepared for the increase. Still, the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ: DGRW) was. It’s interesting why that’s the case.
DGRW does things differently
Explaining why the 13-year-old, $16.7 billion WisdomTree ETF has, as of May 20, an 8.8% weight (higher than the S&P 500’s exposure to the stock, by the way) to Nvidia isn’t difficult. Many legacy dividend ETFs focus on yield or the length of payout-increase streaks. This ETF does neither, meaning it can include low-yielding stocks.
That explains why the ETF has a 32.1% weight to tech…
