From Nasdaq: 2024-05-04 16:10:00

Alphabet (NASDAQ: GOOGL) joins Meta, Microsoft, and Apple to pay quarterly dividends, establishing as one of the “Magnificent Seven” companies. The initial payout is $0.20 per share with plans for sustainability.

Together, the four companies pay out approximately $50 billion annually to their shareholders through dividends and stock buybacks. Microsoft leads in dividend payments with $20.7 billion in the last year.

With a market capitalization in the trillions, Alphabet aims to reward shareholders with dividends and buybacks, providing a complete investment package. Despite a high stock price, Alphabet’s capital return yield of 3.4% demonstrates a generous return to investors.

Alphabet’s dividend initiation signifies a new era for big tech companies and underscores their commitment to rewarding shareholders. With a strong balance sheet and growth prospects, Alphabet remains a solid investment choice for the future.

Consider investing in Alphabet, as identified by The Motley Fool Stock Advisor as one of the top picks for investors. While Alphabet is not on their list, the recommended stocks can potentially offer substantial returns over time, based on historical performance.

*Stock Advisor returns as of May 3, 2024. Suzanne Frey from Alphabet is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet, Apple, Microsoft, Meta Platforms, and Nvidia.

Read more at Nasdaq: Google Parent Company Alphabet Just Proved Why Dividends Matter, Even for Growth Stocks