While it can be exciting when a stock you own declares a dividend raise, the hard truth is that many hikes are unspectacular. The raises tend to be fairly modest, rising by a low- to mid-single-digit percentage. Every once in a while, however, a company's management will be confident enough, sufficiently flush, or both, to enact a dividend raise worth getting excited about.
For shareholders of the three companies featured here, the payout raises made this year were surprising and substantial, jumping at least 30%. Here's the skinny on the increases from artificial intelligence (AI) hardware makers Nvidia (NASDAQ: NVDA) and Micron Technology (NASDAQ: MU), as well as specialized financial services provider OTC Markets Group (OTC: OTCM). This Rare Signal Is Flashing Again.
In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Nvidia issued the biggest raise among the three, boosting its per-share dividend by 2,400%.
To be fair, the raise comes from a low base, going from $0.01 per (split-adjusted) share to $0.25. The AI revolution is in full swing, and it wouldn't be as durable and sustained as it is without the involvement of Nvidia. Enthusiasm for its state-of-the-art AI processors has helped its fundamentals really balloon of late.
In its second-quarter fiscal 2027, Nvidia more than doubled its revenue year over year to $96 billion (sequential improvement was also considerable at 18%). Adjusted net income motored even higher, rising 118% to almost $54 billion. With that kind of growth and bottom-line margin, which is now typical for Nvidia, it has too much cash available.
Such gains may not be sustainable forever, but the company's success appears set to continue, pointing to further payout increases. Because the stock price continues to outperform, Nvidia's dividend yield remains underwhelming at 0.47%. Micron concentrates on memory and storage solutions for the AI industry.
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