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, We have never declared or paid any cash dividend on our common or capital stock.
This is why many investors tend to consider owning Google stock. This is another reason why Google does not pay a dividend: if a dividend is in place, there is an obligation to make regular payments to shareholders.
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.
Will Google Pay a dividend in the future?
It is possible that Google will pay a dividend in the future. This usually happens when a company has exhausted many avenues of growth, but is still earning enough to reward shareholders with a dividend payment. Dividend payments, particularly if they can be increased over time, often signal that a company is in.
Some think that 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.
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.
While writing we ran into the query “Are there any companies that do not pay dividends?”.
Occasionally, we have the white elephants like Google, Facebook, Berkshire Hathaway and the other companies mentioned above that do not pay dividends despite a clear ability to afford one.
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.