NVE Corporation: Recovery And Dividend Payment, Both Sustainable

  • NVEC is a buy, as the recovery in sales is likely to be sustained, and on strong margins, and a 4.7% dividend yield supported by robust free cash flow. Despite its small size, NVEC outperforms larger peers in profitability and margin, driven by its niche spintronics technology and specialized applications. Tariff risks exist, but NVEC's U.S.-centric manufacturing and resilient supply chain minimize exposure, supporting ongoing operations and growth.