2 Stocks With Better Dividends Than NVIDIA Corporation

2 Stocks With Better Dividends Than NVIDIA Corporation

Graphics-chip company NVIDIA (NASDAQ: NVDA) isn't much of a dividend stock these days. A surging stock price over the past year has rendered the dividend almost inconsequential, with a yield of just 0.33%. On top of that lackluster dividend, shares trade for more than 60 times last year's earnings. Those are two good reasons for dividend investors to avoid the stock.

The story pushing NVIDIA stock into the stratosphere is the company's opportunity in artificial intelligence. NVIDIA's GPUs are being used in cloud data centers to accelerate AI workloads, and major automakers are using its chips to develop self-driving cars. At the same time, the core gaming business is booming, driven by strong sales of the GTX 1000 series graphics cards.

There are plenty of other companies investing in innovative technology, and some of them pay far better dividends than NVIDIA. Two prime examples are software giant Microsoft (NASDAQ: MSFT) and networking hardware giant Cisco Systems (NASDAQ: CSCO). Both stocks pay dividends that beat the S&P 500 in terms of yield, and both stocks trade at far lower valuations than NVIDIA. For dividend investors, choosing Microsoft or Cisco over NVIDIA is a no-brainer.

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Source: Fool.com