Dividend Stock: Google parent Alphabet Declares Dividend, Company Reclaims Spot in 2 Trillion Valuation Club
Photo : PTI
Google‘s parent company, Alphabet, made waves in the market after it declared its first-ever dividend and initiate a $70 billion stock buyback program. This move led to a significant surge in Alphabet’s stock prices by nearly 16 per cent, signalling investor confidence in the tech giant’s future prospects.
Dividend Declaration
Alphabet’s decision to issue a dividend reflects its commitment to reward shareholders while continuing to invest in strategic initiatives. The announcement comes at a time when Alphabet is aggressively expanding its data centre infrastructure to stay competitive in the rapidly evolving landscape of artificial intelligence (AI).
The tech industry has been witnessing a trend of major players, including Alphabet’s rival Meta Platforms, embracing dividend payouts. Meta Platforms had previously announced its own inaugural dividend, resulting in a substantial increase in its market value. Notably, Amazon.com remains an outlier among Big Tech firms by not offering dividends to its investors.
Following the announcement, Alphabet experienced an impressive surge in its after-hours share prices, soaring by nearly 16%. This surge translated to a significant increase in the company’s market capitalization, surpassing the $2 trillion mark. CEO Sundar Pichai highlighted the role of AI in enhancing Google’s core search results during the earnings call, underscoring the company’s continued innovation in this field.
The stock’s performance reflected investor enthusiasm, with shares trading up by 11.7% and reaching record highs shortly after the market opened.
(Reuters Inputs)
