How Much Will Alphabet Pay Out in Dividends in 2025?

Source The Motley Fool

Earlier this year, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) joined fellow tech giants like Apple, Meta Platforms, and Microsoft in becoming a dividend stock. The move may have been a signal to calm investors' fears that generative artificial intelligence threatens its most valuable property, Google Search, which has an estimated 90% market share for Internet searches.

So, let's examine Alphabet's dividend, its growth potential, and how it rewards shareholders in another way.

Here is Alphabet's dividend information

In August, Alphabet announced its first-ever quarterly dividend of $0.20 per share, totaling $0.80 per share annually, with a dividend yield of 0.47%.

When a company issues a dividend, investors typically want to ensure it can support these payments without straining its cash reserves. Alphabet's strong financial position -- boasting $82.4 billion in net cash -- indicates it can comfortably cover dividend payouts, which are projected to cost the company nearly $10 billion annually.

For any dividend-paying stock, a key metric to monitor is its payout ratio, which shows what portion of earnings is paid out as dividends. Alphabet's payout ratio is a modest 5.2%, notably lower than other tech giants like Apple, Meta Platforms, and Microsoft.

Given Alphabet's healthy balance sheet and low payout ratio, investors can reasonably anticipate potential increases in its dividend over time. However, management has not signaled how much of a dividend increase is due.

GOOGL Payout Ratio Chart
GOOGL Payout Ratio data by YCharts.

Here's what else Alphabet is doing for shareholders

Alongside its steady dividend, Alphabet is aggressively repurchasing its own shares, which effectively returns capital by increasing each shareholder's ownership stake. Over the past five years, management has reduced the company's outstanding shares by 11% and recently committed to a $70 billion share repurchase program. In the most recent quarter alone, Alphabet invested $15.3 billion in buybacks, bringing the total to $46.7 billion in buybacks for the first three quarters of 2024.

Should you invest $1,000 in Alphabet right now?

Before you buy stock in Alphabet, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $912,352!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of November 4, 2024

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Collin Brantmeyer has positions in Alphabet, Apple, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple — BTC, ETH and XRP defend key support as rebound scenario stays in playBTC holds above $90,000, ETH hovers near $3,128 at the 50-day EMA, and XRP steadies above $2.07 as traders weigh rebound targets and key downside levels.
Author  Mitrade
Jan 09, Fri
BTC holds above $90,000, ETH hovers near $3,128 at the 50-day EMA, and XRP steadies above $2.07 as traders weigh rebound targets and key downside levels.
placeholder
Solana Future: From high-speed experiment to corporate treasury playbook for the next SOL cycleSolana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
Author  Mitrade
Jan 12, Mon
Solana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
placeholder
Gold Price Forectast: XAU/USD rises above $4,600 on US rate cut expectations, Fed uncertainty Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.
Author  FXStreet
Yesterday 01: 45
Gold price (XAU/USD) rises to around $4,600 during the early Asian session on Wednesday. The precious metal gains momentum as traders firm up bets on US interest rate cuts after the release of inflation data.
placeholder
US Dollar Index steadies above 99.00 ahead of Retail Sales, PPI dataThe US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is inching lower after registering modest gains in the previous session. The DXY hovers around 99.10 during the Asian hours on Wednesday.
Author  FXStreet
20 hours ago
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is inching lower after registering modest gains in the previous session. The DXY hovers around 99.10 during the Asian hours on Wednesday.
placeholder
Bitcoin shows strong correlation with institutional demand following 7% uptickBitcoin's price has largely tracked net institutional demand over the past year, according to Bitwise. Net institutional demand is the buying activity of global exchange-traded products (ETPs) and treasury companies minus new supply.
Author  FXStreet
5 hours ago
Bitcoin's price has largely tracked net institutional demand over the past year, according to Bitwise. Net institutional demand is the buying activity of global exchange-traded products (ETPs) and treasury companies minus new supply.
goTop
quote