Alphabet Inc. NASDAQ: GOOGL got a much-needed win from its first-quarter earnings report. Shares of GOOGL stock are up more than 11% in pre-market trading after the tech giant announced its first-ever dividend and expanded its share buyback program to $70 billion.
The 20 cents per share dividend will be paid on June 17 to holders of record on June 10. The dividend will apply to all three of the company's share classes. If projected over a full year, the dividend will have an 11% payout ratio based on current earnings estimates. That's comparable to the dividend paid by Apple Inc. NASDAQ: AAPL.
Alphabet is the latest "big tech" company to take steps to be more shareholder-friendly. In 2023, Meta Platforms Inc. NASDAQ: META proved to investors that it could be more disciplined in its spending and prioritized earnings.
Earnings have not been a problem for Alphabet, and the same was true in this earnings report. The company reported $1.81 in earnings per share (EPS), a 26% increase from the $1.56 expected and a 54% year-over-year increase.
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Compare These Stocks Add These Stocks to My Watchlist Chris Markoch, Guest
MarketBeat Contributor, MarketBeat
Chris Markoch is a freelance financial copywriter with over five years of experience covering various aspects of the financial markets. You may find his writing a little different than other stock articles you’ve read. And that’s OK with him. Chris doesn’t have a traditional finance background. What he does bring to the table is a strong business and marketing background having worked for agencies that serviced Fortune 500 companies. With that in mind, he isn’t overly impressed with what companies say, and more focused on what they do. And because buyer behavior dictates so much of what happens with a stock, Chris always keeps the end consumer close in mind. Chris has been writing for MarketBeat since 2018.
Thomas Hughes, Guest
MarketBeat Contributor, MarketBeat
Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Laycee Kluin, Host
Digital Marketing Strategist, MarketBeat
As MarketBeat's Digital Marketing Strategist, Laycee helps with the marketing side of tasks including developing email campaigns, running the promotion of the MarketBeat products and exploring social media opportunities. She felt called to the Marketing industry because she enjoys collaborating with people and making connections. The University of Sioux Falls alum majored in Media Studies with minors in Communications and Spanish. Laycee brings a background in Financial Services Marketing.
