3 Dividend-Paying Semiconductor Stocks To Buy In September

Now, it’s time to take a look at three semiconductor companies that pay a dividend that investors might want to consider buying right now.

1. Nvidia (NVDA - Free Report)

Nvidia is a GPU power that helps drive the quickly expanding high-end gaming market. The firm’s products are also used in data centers, artificial intelligence, autonomous driving, and more. NVDA has seen its quarterly revenue fall over the last three quarters. With that said, the firm’s Q2 fiscal 2020 revenue fell by the smallest amount (17%, compared to Q1’s 30% drop) and management is optimistic. Last quarter, the company posted sequential growth across all of its platforms and said that adoption of its next-generation graphics chips “has reached a tipping point.”

NVDA shares have surged 38% in 2019 to outpace the broader semiconductor market’s 22% climb. Despite the jump, Nvidia stock still rests nearly 40% below its 52-week highs and its growth outlook is strong. Our current Zacks Consensus Estimates call for Q3 2020 revenue and earnings to slip 9% and 16%, respectively to help push its full-year sales and EPS down at similar clips. Then, Q4 revenue is projected to soar 39% above the year-ago period’s rough quarter, to help lift earnings by 111% to $1.69 per share. NVDA’s full-year fiscal 2021 earnings are then projected to climb 32% higher than our current-year estimate on 21% stronger sales that would see it easily top 2019 and 2020.

NVDA is a Zacks Rank #3 (Hold) at the moment and its longer-term earnings revisions have trended more heavily in the right direction. Nvidia, which sports a “B” grade for Growth in our Style Scores system, also currently pays an annualized dividend of $0.64 per share, for a 0.35% yield. This isn’t strong, but it is better than nothing, while also providing the potential for massive growth. And Nvidia is still trading far below its three-year highs in terms of forward earnings.   

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