How Much Will Alphabet Pay Out in Dividends in 2025?

Core Viewpoint - Alphabet has transitioned to a dividend-paying stock, which may help alleviate investor concerns regarding the impact of generative artificial intelligence on its core business, Google Search, which holds a 90% market share in Internet searches [1]. Dividend Information - In August, Alphabet declared its first quarterly dividend of $0.20 per share, amounting to an annual total of $0.80 per share, resulting in a dividend yield of 0.47% [3]. - The company has a robust financial position with $82.4 billion in net cash, allowing it to comfortably support projected annual dividend payouts of nearly $10 billion [4]. Payout Ratio and Growth Potential - Alphabet's payout ratio stands at a modest 5.2%, significantly lower than other tech giants such as Apple, Meta Platforms, and Microsoft, indicating potential for future dividend increases [5]. Shareholder Returns - In addition to dividends, Alphabet is actively repurchasing shares, which enhances shareholder value by increasing ownership stakes. Over the past five years, the company has reduced its outstanding shares by 11% and has initiated a $70 billion share repurchase program [6]. - In the most recent quarter, Alphabet invested $15.3 billion in buybacks, totaling $46.7 billion in buybacks for the first three quarters of 2024 [6].