Last Updated on 09/18/2020 by GS Staff
Q: Does Google pay dividends?
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. The primary use of capital continues to be to invest for the long term growth of the business. We regularly evaluate our cash and capital structure, including the size, pace and form of capital return to stockholders
You should not invest in Google expecting a dividend at this point. The company is currently retaining earnings to fuel growth. While Google has grown massively over previous years, they are still using their earnings to maintain their dominance in their niche similar to Netflix. You should anticipate any potential returns to come from an increase in the stock price alone.
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 a strong or stable financial situation.
While Google certainly has the cash to pay a dividend to all shareholders with $119.7 billion in cash, cash equivalents, and marketable securities as of December 31, 2019, there is no evidence to suggest a dividend is imminent.
Dividend-Paying Tech Companies
If you are looking for a technology company that pays dividends, they certainly are out there. Here a few that provide decent dividend yields at the time of this article: