Google, dividend | Fox Business

Google’s parent company Alphabet announced its first-ever dividend plan during its latest quarterly results, joining several rival tech giants in paying dividends. This is driven by search momentum and plans to further leverage AI.

A cash dividend of $0.20 will be paid on June 17 to shareholders of record in all three classes of corporate stock A, B, and C as of June 10. The search giant also approved a $70 billion share buyback. The company has $108 billion in cash.

“We have had a share repurchase program in place for quite some time and have continued to grow over the years, and as I said, this will further strengthen our overall capital return program. “To be clear, we’ve been talking about our capital allocation framework for quite some time, and that hasn’t changed,” Google President and Chief Investment Officer Ruth Porat told FOX Business. told Susan Lee.

Ms. Porat most recently served as Chief Financial Officer (CFO), and the search for her successor in that role is ongoing.

The stock rose in after-hours trading, pushing its market capitalization above $2 trillion and up another 11% this year.

CEO Sundar Pichai said the company is moving forward with AI across its businesses, as revenue rose 15% year over year to more than $80 billion and profits rose 61% to $1.89 per share. We have redoubled our efforts.

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“We had a great quarter, driven by strong performance in search, YouTube and cloud. Today I want to share how we are thinking about the business and opportunities more broadly, with a focus on AI and search, of course. ” Sundar Pichai, Google CEO, told investors during an earnings call.

Mr. Sander recently made headlines for firing a group of workers who staged anti-Israel protests that led to protests in his office for other purposes. In a detailed memo, he said such behavior would not be tolerated in the workplace.

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Mark Zuckerberg’s Meta, which is also in the AI ​​race, started paying a 0.50 cent dividend earlier this year, paid on March 26th. Facebook’s parent company reported results on Wednesday, and Zuckerberg warned that it could take time for the company’s heavy spending on AI to pay off.

“While we remain focused on running the rest of our company efficiently as we grow our capital and energy spending on AI, the reality is that many of our existing resources will be “Our growth will continue even as we shift to focus on these products. We need to make meaningful use of our investment space before we can generate significant revenue from some of these products,” he said on the conference call. He told the analysts and investors who were listening.

The stock fell 10.56%, its worst performance since October 27, 2022. The stock is still up more than 24% year-to-date.

Other tech giants that pay dividends include Apple and Microsoft. Amazon remains resilient.

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