This could result Google having to use debt for acquisitions, which could be a negative for shareholders over the long term. This is another reason why Google does not pay a dividend: if a dividend is in place, there is an obligation to make regular payments to shareholders. This is why many investors tend to consider owning Google stock. If Google were to purchase one of these companies, or even others, a fair amount of cash would be needed to complete the transaction, since Google prefers to use cash to make acquisitions rather than using debt. (NASDAQ:NFLX) or Twitter Inc (NYSE:TWTR). There is almost a rumor that Google is looking to acquire Netflix, Inc. (Source: “ Google’s Ten Biggest Acquisitions,” Business Insider, January 20, 2015.) The largest of these deals was the $12.5-billion purchase of phone set provider Motorola in 2011. Since going public, Alphabet/Google has purchased more than 150 companies. There are more crazy projects like these within Google, which are completed in a separate building known as “Google X.” Any of these projects could either be a home run for investors or just a dream-only time will tell.Īnother reason Google dividend is zero is because its cash is needed for acquisitions. Other areas of investment include smart contact lenses and a high-altitude balloon with Internet connectivity.
Google share price license#
While Google has yet to confirm its long-term plans regarding the tech, it could partner with a car manufacturers or license its technology to generate cash flow, should the company’s research bear fruit. One such project is driverless cars, which looks to be the next major automotive technology. Google stock is known as an exciting investment opportunity due to some of the projects currently in the works. Google is known as a growth company and its management team believes that for shareholders to most benefit, earnings should be retained and used to grow the business further. It has also repurchased shares in the past-always a shareholder-friendly move-but this alone does not meet the criteria of an income investor. However, going by Google’s financial metrics, it doesn’t pay a dividend, therefore Alphabet’s dividend yield is zero. Typically, such companies are known to pay out a dividend. The latter are always seeking an investment opportunity in the technology sector due to the high returns on investments and steady and reliable cash flows.Īlphabet, also known as Google, is a company that operates around the world and is known as a major source of cash flow, which grows year after year. Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG) stock is one that many investors keep their eye on, be it growth investors or, more recently, income investors.