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Google's parent company Alphabet recently made some announcements that should have current shareholders and prospective investors equally excited.
In its earnings call on Thursday, April 25, Alphabet (GOOGL) reported better-than-expected first quarter earnings, a $70 billion stock buyback plan and — most intriguing of all — the approval of its first-ever dividend.
Shares of the company jumped nearly 15% in after-hours trading on the news, increasing Alphabet's valuation by $196 billion, which marked its largest single-day gain since 2015.
According to Barron's, the surge in valuation resulted in Alphabet becoming the fourth member of the $2 trillion market cap club (along with Microsoft, Apple and Nvidia) 947 days after breaching $1 trillion in market cap in July 2020.
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How much will Alphabet's dividend pay?
The dividend announcement was of particular interest to investors. In doing so, Alphabet now joins fellow "Magnificent Seven" companies Apple, Meta, Microsoft and Nvidia in providing shareholders with quarterly yield, leaving Amazon and Tesla as the only two companies in the cohort that do not.
The dividend is currently yielding 0.46%, or 20 cents per share, with all three classes of the stock — A, B and C — eligible to receive the payment.
Alphabet's first distribution will occur on June 17 and will be paid to shareholders of record as of June 10, meaning investors must own the stock by that ex-dividend date in order to be eligible to receive the payment.
Earnings blew away forecasts
In their earnings call after the market closed, Alphabet announced earnings per share (EPS) of $1.89 and quarterly revenue of $80.5 billion, which beat forecasts of $1.50 and $78.7 billion by 25.61% and 2.34%, respectively.
This marks the fifth consecutive quarterly EPS beat for the company, and the fourth in a row that revenue has exceeded analysts' expectations. The earnings beat marked a 15% year-over-year gain, good for $23.6 billion in net income, or profit, for the first quarter of 2024.
Shares of GOOGL are up 57% over the past year.
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FAQs
The dividend announcement was of particular interest to investors. In doing so, Alphabet now joins fellow “Magnificent Seven” companies Apple, Meta, Microsoft and Nvidia in providing shareholders with quarterly yield, leaving Amazon and Tesla as the only two companies in the cohort that do not.
Will Alphabet ever pay a dividend? ›
Google parent company Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) surprised investors earlier in 2024 by announcing its first-ever dividend along with its first-quarter earnings report.
Is Google going to start paying dividends? ›
Now Alphabet (GOOG/GOOGL), in conjunction with its first-quarter earnings release on April 25, said it is initiating a quarterly dividend for all its share classes. Shareholders on record as of June 10 will be paid a dividend of $0.20 per share on June 17.
What is the dividend percentage for Alphabet? ›
Alphabet has a fantastic long-term track record of financial performance. It is one of the largest and most profitable companies in the world, and keeps growing sales at impressive rates each year. Its current dividend yield is a measly 0.5%, but the stock is not expensive.
Does Alphabet Class C pay dividends? ›
Alphabet Inc Class C pays quarterly dividends. This is paid in the months of June.
How much will Alphabet stock be worth in 5 years? ›
Even if Alphabet is trading at 24 times forward earnings after five years, which is equivalent to its five-year average forward price-to-earnings ratio, its stock price could jump to $332 in five years.
What is the Google dividend for 2024? ›
Alphabet's Board of Directors today approved the initiation of a cash dividend program, and declared a cash dividend of $0.20 per share that will be paid on June 17, 2024, to stockholders of record as of June 10, 2024, on each of the company's Class A, Class B, and Class C shares.
Is it a good time to buy alphabet stock? ›
Alphabet Class A has 29.38% upside potential, based on the analysts' average price target. Is GOOGL a Buy, Sell or Hold? Alphabet Class A has a consensus rating of Strong Buy which is based on 27 buy ratings, 9 hold ratings and 0 sell ratings.
Has Amazon ever paid a dividend? ›
Founder and longtime CEO Jeff Bezos instilled a "Day One" philosophy in the company and insisted that it would invest for the long term. Amazon has never paid a dividend, and the company rarely buys back its stock. In fact, its share count has grown consistently over its history due to share-based compensation.
Is Coca-Cola a dividend stock? ›
The Coca-Cola Company's ( KO ) dividend yield is 2.72%, which means that for every $100 invested in the company's stock, investors would receive $2.72 in dividends per year. The Coca-Cola Company's payout ratio is 75.57% which means that 75.57% of the company's earnings are paid out as dividends.
Alphabet Stock Forecast
The 36 analysts with 12-month price forecasts for Alphabet stock have an average target of 199.67, with a low estimate of 129 and a high estimate of 240. The average target predicts an increase of 34.27% from the current stock price of 148.71.
What is the fair price for Alphabet stock? ›
As of 2024-09-11, the Fair Value of Alphabet Inc (GOOGL) is 170.51 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 148.66 USD, the upside of Alphabet Inc is 14.7%.
What are the best stocks for dividends? ›
Top 10 Dividend Stocks In The United States
| Name | Dividend Yield | Dividend Rating |
|---|
| Dillard's (NYSE:DDS) | 6.01% | ★★★★★★ |
| Premier Financial (NasdaqGS:PFC) | 5.12% | ★★★★★★ |
| Silvercrest Asset Management Group (NasdaqGM:SAMG) | 4.89% | ★★★★★★ |
| OceanFirst Financial (NasdaqGS:OCFC) | 4.52% | ★★★★★★ |
6 more rows2 days ago
Class C shares give stockholders an ownership stake in the company, just like Class A shares, but unlike common shares, they do not confer voting rights on shareholders. As a result, these shares tend to trade at a modest discount to Class A shares.
What is Tesla's dividend yield? ›
Historical dividend payout and yield for Tesla (TSLA) since 1971. The current TTM dividend payout for Tesla (TSLA) as of September 11, 2024 is $0.00. The current dividend yield for Tesla as of September 11, 2024 is 0.00%.
Is Microsoft a dividend stock? ›
Annual shareholders meeting set for Dec. 10, 2024
— Sept. 16, 2024 — Microsoft Corp. on Monday announced that its board of directors declared a quarterly dividend of $0.83 per share, reflecting an 8 cent or 10% increase over the previous quarter's dividend.
Why does Google pay no dividends? ›
Google has chosen not to pay dividends, primarily due to its strong desire to remain focused on expanding into new business ventures. This sets Google apart as a company continuously seeking innovation, even though some of its endeavors may fail to succeed.
What is the future of Alphabet shares? ›
Based on 36 Wall Street analysts offering 12 month price targets for Alphabet Class A in the last 3 months. The average price target is $203.72 with a high forecast of $240.00 and a low forecast of $170.00. The average price target represents a 29.38% change from the last price of $157.46.
Is Alphabet a good investment now? ›
Alphabet stock has turned in good and bad years recently. Shares jumped 65% in 2021 but in 2022 dropped 39%. Despite mounting competition in AI and internet search, Alphabet advanced 58% in 2023.
What is the Alphabet profit for 2024? ›
Alphabet revenue for the twelve months ending June 30, 2024 was $328.284B, a 13.38% increase year-over-year.
