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Needles in a Haystack: 3 Cathie Wood Stocks That Pay Dividends

newsfeedback@fool.com (Eric Volkman)
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⚡ Quantum Brief
Cathie Wood’s Ark Invest ETFs focus on disruptive innovation, typically reinvesting cash flow rather than paying dividends, but three holdings—Nvidia, BYD, and Meta—now offer shareholder payouts despite their growth-oriented strategies. Nvidia dominates AI GPU markets, reporting 73% YoY revenue growth in Q4 2026, though its 0.02% dividend yield remains symbolic amid sky-high valuations driven by relentless AI demand. BYD overtook Tesla as the top global EV maker in 2025, leveraging China’s government-backed push and vertical integration, with a 4.8% dividend yield and a PEG ratio under 1, signaling potential undervaluation. Meta’s ad-driven empire crossed $200B in 2025 revenue, maintaining 30%+ net margins, though its 0.3% dividend—introduced in 2024—reflects its focus on reinvestment over shareholder returns. All three stocks reside in multiple Ark ETFs, blending growth potential with rare income appeal, defying the firm’s typical non-dividend innovation playbook.
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The investing strategy of famous investor Cathie Wood and her Ark Invest exchange-traded funds (ETFs) centers around disruption and innovation. Ark states explicitly on its website that "Innovation should displace industry incumbents, increase efficiencies, and gain majority market share" -- hence the firm's approach. For the most part, such disruptive businesses plow their free cash flow back into keeping the innovation train running rather than funneling it toward shareholder remuneration. But even with Ark's emphasis on these types of companies, there are a few notable dividend payers scattered throughout its ETFs, among them Nvidia (NVDA 1.62%), BYD (BYDDY 4.55%), and Meta Platforms (META 2.30%). 1. Nvidia Nvidia is a monster tech stock these days, mainly because it produces the advanced graphics processing units (GPUs) that are the "brains" of choice for handling artificial intelligence (AI) workloads. So it's a top pick for investors who are -- justifiably, in my opinion -- bullish on the technology's future. Image source: Nvidia. That said, expectations are sky-high for Nvidia these days, and it hasn't been easy for it to meet them. Following the company's latest earnings release, in which it reported that its fourth-quarter fiscal 2026 revenue had risen 73% year over year to a new record high, the stock actually sank. There are concerns in the market that the rapid rise of AI might not be a one-size-fits-all growth catalyst for every company involved in it. Nvidia's stock has also been on quite a tear over the past two years, pushing its valuations too high for comfort for some investors. I wouldn't be so cautious. AI is an unstoppable force fed by ravenous demand. Given that factor alone, said valuations make the stock look inexpensive to me, if anything. Nvidia isn't known as a dividend stock, even though it has paid a quarterly distribution since late 2012. That's likely because it's not a high or even average yield: Though its payouts have been more meaningful in the past, the current payout of $0.01 per share quarterly yields a microscopic 0.02%. Nvidia stock resides in the portfolios of the Ark Innovation ETF, Ark Space & Defense Innovation ETF, and Ark Autonomous Tech & Robotics ETF. ExpandNASDAQ: NVDANvidiaToday's Change(-1.62%) $-2.97Current Price$180.07Key Data PointsMarket Cap$4.4TDay's Range$177.91 - $184.0552wk Range$86.62 - $212.19Volume5.1MAvg Vol175MGross Margin71.07%Dividend Yield0.02% 2. BYD China's government and that nation's electric vehicle (EV) makers are aligned on one ambitious goal -- to make its domestic auto industry a global powerhouse. So far, so good, as the largest Chinese EV manufacturer, BYD, was also the top worldwide shipper of battery-electric vehicles (BEVs) in 2025, when it eclipsed Tesla for the first time. It helps that the Chinese market is enormous, and BYD also is benefiting from a top-down push by the government to shift to greener vehicle alternatives. BYD's extreme and disciplined vertical integration enables efficient production of both BEVs and hybrids, while its growing company-owned fleet of massive cargo ships has allowed it to become an active exporter. As a Chinese manufacturer, BYD enjoys another advantage: It is more able to produce vehicles at modest prices. By contrast, Tesla has been slow and hesitant in pivoting toward more budget-friendly models. All told, BYD's unit sales of "new energy vehicles" (i.e., BEVs and hybrids) rose by almost 8% last year to over 4.6 million. The company hasn't yet published its final set of 2025 figures, so it's a wait-and-see on how these increases are affecting the fundamentals. Based on current analyst projections, though, its five-year PEG ratio is below 1, suggesting its stock is underpriced (and compares most favorably to Tesla's bloated PEG ratio of 6.2). As for its annual dividend, the latest quarterly payout was the equivalent of $0.20 per share, giving it a yield of 4.8% at the most recent closing stock price. BYD stock is included in the Ark Autonomous Tech & Robotics ETF. ExpandOTC: BYDDYBYD CompanyToday's Change(-4.55%) $-0.56Current Price$11.74Key Data PointsMarket Cap$136BDay's Range$11.69 - $11.8852wk Range$11.20 - $20.05Volume3.1MAvg Vol1.8MGross Margin23.15%Dividend Yield1.49% 3.

Meta Platforms Few self-respecting investors would shun Meta, as the company is the most significant social media site operator by a mile. It possesses a massive audience that can be laser-targeted for advertising and content thanks to the often granular data sets provided by its users. Image source: Getty Images. Meta has never had an awful quarter, and it habitually posts juicy growth numbers -- an impressive feat on its own, given the ephemeral nature of many technology trends. Last year, its revenue blasted 22% higher, crossing the $200 billion mark. Although net income declined, the slide was a not-very-worrying 3%, and the metric was still considerable at more than $60 billion. That, by the way, gave it a net margin of over 30%. ExpandNASDAQ: METAMeta PlatformsToday's Change(-2.30%) $-15.35Current Price$652.38Key Data PointsMarket Cap$1.7TDay's Range$651.14 - $670.6052wk Range$479.80 - $796.25Volume608KAvg Vol15MGross Margin82.00%Dividend Yield0.31% As a longtime Facebook user, however, I'd have some concern about its "stickiness." Yes, that user base is massive, but it seems to me that people are posting (and interacting) less on that site and Instagram. Then again, Meta's top-line growth indicates they're logging on regardless and being served revenue-earning ads, so clearly management is doing something right. Meta is a relative newcomer to dividends, having declared its first quarterly payout in early 2024. These days, the disbursement stands at just under $0.53 per share quarterly and yields a meager 0.3%. The company's stock is tucked into the portfolios of the Ark Innovation ETF, Ark Next Generation Internet ETF, and Ark Blockchain & Fintech Innovation ETF.

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