Nvidia CEO Jensen Huang told Yahoo Finance that the company is seeing an increase in demand around generative AI.
Rising interest rates prompted many investors to rotate from dividend stocks toward higher-yielding fixed-income investments like bonds, T-bills, and CDs over the past year. Over the past two decades, a modest $3,000 investment in Taiwan Semiconductor Manufacturing (NYSE: TSM), Procter & Gamble (NYSE: PG), and Target (NYSE: TGT) would have blossomed into roughly $87,000, $17,000, and $23,000, respectively, if you had reinvested their dividends through a dividend reinvestment (DRIP) plan.
Often, when a stock has a high and rising dividend yield, it's a red flag that the dividend may not be sustainable. This is exactly what happened recently with two popular dividend stocks, Intel (NASDAQ: INTC) and Annaly Capital Management (NYSE: NLY). Intel, the semiconductor chipmaker, slashed its quarterly dividend in late February to $0.125 per share, down from $0.365 the previous quarter -- a 66% cut.