From Nasdaq: 2024-05-05 05:15:00

Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is finally offering a dividend of $0.80 per share annually, following its tech peers in becoming a dividend stock. With a $2 trillion market cap and $108 billion in liquidity, Alphabet has the resources to maintain its innovative edge while providing shareholder return.

While the move to offer a dividend signals maturity, the yield of less than 0.5% may not attract investors seeking higher returns. Shareholders who bought Alphabet at its IPO in 2004 may find the dividend payout underwhelming. The company also authorized $70 billion for share repurchases.

Investors should focus on Alphabet’s non-dividend investment case, as the dividend yield is significantly lower than the S&P 500 average. The majority of returns will likely come from share repurchases. Overall, the dividend does not drastically change the investment thesis for holding Alphabet stock.

The Motley Fool Stock Advisor analysts recommend 10 stocks for potential monster returns, with Alphabet not making the list this time. Consider their track record, including Nvidia’s notable growth. Stock Advisor provides a blueprint for success with regular updates and new stock picks each month, outperforming the S&P 500 since 2002.



Read more at Nasdaq: Does Alphabet’s Dividend Mean Anything to Investors?