Alphabet, the parent company of Google, announced its first-ever dividend of 20 cents per share and authorized a $70 billion stock repurchase, CNBC reports.
Alphabet’s decision comes at a time when the company boasts a substantial cash reserve of $108 billion in cash and marketable securities. The news of the dividend and stock repurchase sent Alphabet’s shares soaring by 15% in after-hours trading, reflecting investors’ positive response to the company’s better-than-expected first-quarter earnings.
The dividend will be payable to all classes of shares, including super-voting Class B shareholders and nonvoting Class C shareholders, with the payout expected in June. Co-founders Sergey Brin and Larry Page are set to receive significant payouts from the dividend, with Brin expected to receive $146 million and Page $78 million based on their shareholdings. This move follows a similar decision by Meta earlier in February to issue its first dividend.
