Google parent Alphabet announces its first dividend, sending its stock soaring.
Google parent Alphabet announces its first dividend, sending its stock soaring.
Berlin, May 25, 2023: Sundar Pichai, CEO of Alphabet and Google, attends a press conference to declare Google as the Women's National Team's new official partner. (Image courtesy of Picture Alliance via Getty Images; photo by Christoph Soeder)
Without its announcement of its first-ever planned payout during its most recent quarterly results—which were fueled by momentum out search less ambitions to become even less dominant out ai—google parent firm alphabet joined both select group of competing tech giants that are paying dividends.
To shareholders of record as of June 10th for all three classes of business shares A, B, and C, the $0.20 cash dividend will be distributed on June 17th. The massive search engine also approved fresh share repurchases for $70 billion. The corporation has $108 billion in cash on hand.
We've been expanding our share repurchase program throughout the years, which we've had for quite some time. And as I mentioned earlier, we believed that this strengthened our entire capital return program even more. To be clear, I have discussed the capital allocation strategy for some time, and it is still the same, Ruth Porat, President and Chief Investment Officer of Google, stated to Susan Li of FOX Business. Porat most recently held the position of CFO, and her replacement is still being sought.
With a market value of over $2 trillion and annual gains of over 24%, shares surged to an all-time high on Friday.
CEO Sundar Pichai strengthened the company's resolve to advance AI across all of its business units as profits increased 61% to $1.89 per share and revenue surpassed $80 billion, up 15% from the previous year.
The fantastic quarter was mostly driven by Search, YouTube, and Cloud's impressive performances. I want to talk about how we are approaching the business and the potential in general today. The CEO of Google, Sundar Pichai, informed investors during the earnings conference call that "of course, that's heavily focused on AI and search."
In a lengthy email stating that such actions would not be accepted in the workplace, Sundar recently made news for firing a group of employees who organized anti-Israel protests that resulted in protests for other causes in the office.
This year, Meta, a competitor in the AI race founded by Mark Zuckerberg, started paying a $0.50 cent dividend that was distributed on March 26. When Facebook's parent company released its financial results on Wednesday, Mark Zuckerberg cautioned that significant investments in artificial intelligence would not yield immediate returns.
"As we’re scaling CapEx and energy expenses for AI, we’ll continue focusing on operating the rest of our company efficiently, but realistically, even with shifting many of our existing resources to focus on AI, we’ll still grow our investment envelope meaningfully before we make much revenue from some of these products," he told investors and analysts who participated in the call.
It was the worst session since October 27, 2022, when shares fell 10.56%. Even still, shares have increased by roughly 24% this year.
Apple and Microsoft are two more tech behemoths that provide dividends. Amazon is still the stout one.
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