Companies in S&P 500 increase dividends by $16 billion in second quarter, driven by Alphabet and Meta Platforms

From Nasdaq: 2024-07-07 08:26:00

Companies in the S&P 500 have been increasing dividend payments, with a $16 billion net increase in the second quarter. Big drivers were Alphabet and Meta Platforms, who initiated or raised dividends. These tech giants have strong financials and are likely to boost dividend payouts further.

Alphabet recently introduced a quarterly dividend of $0.20 per share, totaling $10 billion yearly. It spent $70 billion on share buybacks and had strong cash flow and low debt. Meta Platforms also initiated a $0.50 per share quarterly dividend, totaling $4.4 billion annually. Both companies are well-positioned for dividend growth.

Alphabet and Meta Platforms’ dividend increases were sizable contributors to the S&P 500’s projected 6% dividend increase this year. Tech companies’ cash abundance and growth potential bode well for future dividend hikes, offering investors steady passive income opportunities.

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Read more at Nasdaq: Companies Paid Their Investors $16 Billion More in Dividends Last Quarter. These 2 Magnificent Stocks Helped Drive the Increase.