Nvidia Stock Split: What Investors Need to Know

Nvidia Stock Split: What Investors Need to Know
Nvidia ($NVDA) stock will undergo its sixth stock split with shares trading at one-tenth the price starting June 10, 2024. Before the Q1 2024 earnings call on May 22, 2024 when the split was announced, NVDA closed at $949.50. Since then, the stock has surpassed the $1,150 mark at all-time highs. While the split price will officially take effect June 10, 2024, investors need to own shares by market close (4pm ET) on June 6, 2024 to be issued new shares in the split.
Additionally, management announced a 150 percent increase in cash dividends, from $0.04 per share to $0.10 per share, which will ultimately result in a dividend of $0.01 per share on the shares that were split. What investors need to know about Nvidia dividends and split shares are as follows: Stay up to date on news affecting Nvidia and other potential investments with the Market Minute Newsletter.
Why Is Nvidia Splitting Its Stock?
Nvidia’s upcoming stock split comes after a roughly 5x in stock price since the last split, which began trading June 21, 2021. Investors won’t receive any additional value or voting power, but allow greater flexibility for employees and retail investors to invest in the company with more accessible pricing. Investors typically interpret a stock split as a bullish sign because it indicates that management anticipates a bright financial future for the business even though it does not signify a significant shift in its operations. Dates to Know for Nvidia’s Stock Split and Dividend
Stock split
June 6, 2024, 4pm ET: Own shares of $NVDA by this time to be issued shares at the time of split.
The last day of trading for current float (the number of shares) and share price is July 7, 2024, at 4 p.m. Eastern Time. Brokerages may adjust your account beyond this time.
June 10, 2024, 9:30am ET: The market opens with 10x float and 1/10th the price on $NVDA.
Dividends
Nvidia pays dividends quarterly. The increased dividend, which at the time of the next dividend will be on a split-adjusted level, will be issued at $0.01 per share.
To be considered a shareholder of record and receive dividends for this quarter, you must own shares of $NVDA at this time, on June 11, 2024, at 4 p.m. Eastern Time. On June 28, 2024, shareholders who meet the requirements will receive dividends. You can get help deciding whether $NVDA is a good investment for your objectives from a financial advisor. Contact a financial advisor right away. How the division will operate For any shares of $NVDA that you own by 4pm ET on June 6th, you will be issued nine additional shares after the market closes on June 7th. The closing price of shares on that day will be divided by ten to get the new share price. Your shares will be worth the same value pre- and post-split. It’s just a different way of divvying up your portion of ownership. Shares will start trading at the split-adjusted price at market open on Monday, June 10, 2024.
For example, if the stock closes at $1,150 on June 7th, it would hypothetically open at a price of $115 (but with 10 times the number of shares in circulation).
You are likely to see adjustments to your brokerage account sometime between market close June 7th and when the market opens on the 10th. Your shares will be split without you having to do anything. Nvidia’s Stock Split History
Nvidia went public in 1999. This will be its sixth stock split since then.
Splits include:
6/10/2024: 10-for-1
7/20/2021: 4-for-1
9/11/2007: 3-for-2
4/7/2006: 2-for-1
9/12/2001: 2-for-1
6/27/2000: 2-for-1
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What Else Is Ahead for Nvidia Investors?
The Nvidia annual shareholder’s meeting is scheduled for June 26, 2024 at 9am CT. Investors may be able to vote their shares by proxy through their brokerage. On Nvidia’s investor relations page, you can access the annual shareholder meeting and a recording of the quarterly results. Resources
Money moves all the time. Get matched and speak with a financial advisor for free if you need help determining the value of stocks for your portfolio. To keep up to date on important events affecting Nvidia and other companies, sign up for the free Market Minute newsletter.
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