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,.
Will google pay a dividend?
Alphabet, also known as Google, is a company that operates around the world and is known as a major source of cash flow, which grows year after year. Typically, such companies are known to pay out a dividend. However, going by Google’s financial metrics, it doesn’t pay a dividend, therefore Alphabet’s dividend yield is zero.
Still other parts of Google are focused on entirely different markets, making the company something of a technological conglomerate. That being said, one of the biggest reasons why Google does not currently pay a dividend is that it wishes to continue its expansion into new ventures.
You could be wondering “Should Google Pay a 15% dividend?”
Our answer is according to the most recent reports, Google earned just over $9 per share. Using a payout ratio of 7%, this would represent a rough dividend payment per share of $0.65 and a dividend yield of 0.07%. Having a dividend at 15% would not impact greatly on Googles financial position.
Most notably, Apple ( AAPL ) began paying a dividend in 2012 and appears committed to raising the payout as time goes on. This was after years of investors clamoring for a payout and wondering what the tech giant was going to do with its massive cash pile .
You may be asking “Should you buy Alphabet/Google stock for its dividends?”
This is what I found. 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.
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.
Google has more than $100 billion in cash. It’s time to pay a dividend. JUST WATCHED How Google got its start.
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.