Nvidia's Initiation Of A Dvidend Has Changed My Thinking On Nvidia
Back in the Day when trading nvidia and I had 15% pop on a trade I would sell and park the proceeds in monthly dividend payer like a closed in Australian Bond fund and wait for a roll over. I certainly would have sold today back then.....but I didn't.
Further upside I believe, but when the pull back comes I'm sure it won't be much of anything.
Though the dividend is nice, it should not sway your investment philosophy. Let's be for real, it's only 30 cents/share and we all know that NVDA can swing that much within 15 minutes.
I'm long NVDA, believe it will go higher, but would not let the dividend change my investing as far as the stock goes. Most likely, as is generally the case, we'll see some strength as a result of CES, we'll see some strength the few days prior to the earnings announcement, and then the probabilities say it's time to sell before the earnings are released.
Could that thinking be wrong? Absolutely. Has it been true many more times than not? Anyone who has invested in NVDA over any extended length of time is well aware of it and I'm not saying anything which isn't well known.
A measely 30 cents will not change any of that so far as I'm concerned.
If I really want to hold the stock through the earnings announcement this time, I'll look to sell some covered calls against my position.
"Though the dividend is nice, it should not sway your investment philosophy. Let's be for real, it's only 30 cents/share and we all know that NVDA can swing that much within 15 minutes."
Let's face it we all know Nvidia has the cash and cash flow to increase the dividend over time. That plus the stock buyback will tend to dampen it's volatility over time. Slowly but surely the share holder base will change from traders to growth and income investors. It's a natural progression after Tech stocks initiate dividends.
In the meantime...I just love the dividend.....Don't you?