Google (a. k. a Alphabet Inc.) does not pay dividends. Based on the company’s latest annual report, they have no intention of paying dividends in the foreseeable future. According to the 2019 annual report, Google indicates the following regarding their dividend policy,.
Does google pay dividends on their stock?
Google (Alphabet) has never paid out any cash dividend to shareholders. However, it still managed to return $9.1 bn to investors in 2018, which was 30% of its net profits. It did use cash buybacks instead of dividends, which is just another way how a company can return money to its shareholders .
Does google pay dividends to shareholders?
While Google certainly has the cash to pay a dividend to all shareholders with $119.7 billion in cash, cash equivalents, and marketable securities as of December 31, 2019, there is no evidence to suggest a dividend is imminent. If you are looking for a technology company that pays dividends, they certainly are out there.
This of course begs the question “Why doesn’t Google Pay Dividends?”
This is another reason why Google does not pay a dividend: if a dividend is in place, there is an obligation to make regular payments to shareholders.
It is possible that Google will pay a dividend in the future. This usually happens when a company has exhausted many avenues of growth, but is still earning enough to reward shareholders with a dividend payment. Dividend payments, particularly if they can be increased over time, often signal that a company is in.
Many tech companies pay a dividend, often due to having very large cash balances and high returns on investments. This is exactly the same stage that Alphabet/Google is at today—another positive for investors. Apple Inc. (NASDAQ: AAPL) stock started paying a dividend in 2012 and has grown it each and every year.
Why do companies pay dividends?
To put it bluntly, the company has excess cash to distribute. Historically, dividends were the main reason investors bought stocks. The stock represented an ownership stake in the company and the dividends were the owners’ share of the profits.
The usual way, if the business is incorporated as a company, is by paying dividends to the shareholders. Also referred to as ‘distributions’, dividends are so called because the amount to be paid is divided among the company’s shareholders according to the number of shares held.
How much money does Google Pay out to its shareholders?
However, the fact is that Google/Alphabet has already begun returning money to its stockholders. So how much money in dividends, and by other means, does Google payout to its shareholders? Google (Alphabet) has never paid out any cash dividend to shareholders.