- Alphabet joins tech peers like Microsoft, Apple and Meta in the dividend club.
- Its $0.20 dividend is the first ever and it also authorized an additional $70 billion in buybacks.
- The news could ease the concerns of some tech investors spooked by Meta’s earnings on Wednesday.
Alphabet becomes a member of the dividend club.
In its first-quarter earnings report released Thursday, Google’s parent company announced that it will pay a dividend of $0.20 per share, its first-ever dividend.
It will be paid on June 17 to shareholders of record as of June 10, and Alphabet plans to pay quarterly dividends in the future, the earnings release said. The company also authorized an additional $70 billion in share buybacks.
Its profits also helped support stocks. It reported total revenue of $80.54 billion in the first quarter, beating estimates. This represents an increase of approximately 15% year over year.
Following this news, Alphabet’s stock rose about 13% after hours.
It joins other technology companies like Microsoft, Apple and Meta in distributing dividends. Meta announced a dividend of $0.50 per share, also its first, in February, as well as a $50 billion buyback program.
Alphabet’s announcement — and Microsoft’s, which also beat estimates — could help calm tech investors spooked by Meta’s earnings announcement earlier this week.
Despite outpacing earnings, shares of Meta fell 11% on Thursday after the company issued weak second-quarter revenue guidance.
The earnings report showed that Meta would also spend more than expected this year, due to investments in AI as well as higher infrastructure and legal costs. During Wednesday’s earnings call, Meta CEO Mark Zuckerberg warned investors that it could be some time before the company’s investments in AI bear fruit.
At the same time, Alphabet CEO Sundar Pichai said in his earnings release that “our leadership in AI research and infrastructure, along with our global product footprint, makes us position themselves well for the next wave of AI innovation.”
businessinsider
