<div id="readability-page-1">So you're looking for dividend income -- good for you! Dividend income can be a lifesaver in retirement and can provide cash for more investing when you haven't yet retired. You might also be wishing you were an Nvidia (NVDA 0.87%) shareholder -- because, let's face it, who wouldn't want to be? The semiconductor company has been on a tear in recent years, growing like gangbusters and averaging annual gains of 75% over the past five years and 51% over the past 15 years. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjE3NTUveW91bmctbWFuLXRoaW5raW5nLXNtaWxpbmctcG9jLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjE3NTUveW91bmctbWFuLXRoaW5raW5nLXNtaWxpbmctcG9jLmpwZyZ3PTcwMA"/>Image source: Getty Images. </div> If you're thinking maybe you can combine your quest for dividend income and for Nvidia shares, you might want to think again, though -- because while Nvidia does pay a dividend, it isn't a very big one. It's currently a penny per share per quarter, totaling $0.04 per share over the course of a year. So if you're looking for, say, $500 in annual dividend income, you'd need a lot of Nvidia shares. Divide $500 by $0.04, and you'll get 12,500 -- which is the number of shares you'd need to own to generate $500 per year in dividends. Here's the catch -- with shares recently at $142 apiece, buying 12,500 shares would cost you nearly $1.8 million. That could certainly be a terrific investment, but it's not the most efficient way to produce annual income of $500. So look elsewhere for great dividend investments, but do consider investing in Nvidia. It used to be known as a maker of gaming-chip semiconductors, but it's now a titan in the world of data center chips (often used for artificial intelligence (AI) operations and even cryptocurrency mining). It may grow via acquisitions, too. Better still, Nvidia's stock seems reasonably valued at recent levels. Its recent forward-looking price-to-earnings (P/E) ratio of 34, for example, is below its five-year average of 40. And its recent price-to-sales ratio of 24 is close to its five-year average, though that's quite a steep level. </div>

NVDA

NVDL

07788

07388

NVDY

NVDD

NVDX

NVDQ

Nvidia (NVDA) offers a low dividend of $0.04 per share annually, requiring 12,500 shares to generate $500 in yearly dividends, costing nearly $1.8 million at current prices. While Nvidia's stock has shown impressive growth, it may not be the best option for dividend income. However, it remains a strong investment in the semiconductor sector, particularly in data center chips and AI, with a forward P/E ratio of 34, below its five-year average of 40.

- The article discusses the potential for dividend income, highlighting Nvidia's impressive growth but low dividend payout.  
- To generate $500 in annual dividends from Nvidia, an investor would need to purchase 12,500 shares, costing nearly $1.8 million, making it an inefficient choice for income.  
- While Nvidia is a strong investment in the tech sector, particularly in data center chips, investors seeking dividends should consider other options.  

Motley Fool

NVIDIA

GraniteShares 2x Long NVDA Daily ETF

XL2CSOPNVDA

XI2CSOPNVDA

YieldMax NVDA Option Income Strategy ETF

Direxion Daily NVDA Bear 1X ETF

T-Rex 2X Long NVIDIA Daily Target ETF

T-Rex 2X Inverse NVIDIA Daily Target ETF

Here's How Many Shares of Nvidia Stock You Should Own to Get $500 in Yearly Dividends