Alphabet Inc. (NASDAQ:GOOGL) Announces $0.22 Quarterly Dividend

Key Points

• Alphabet announced a quarterly dividend of $0.22 per share, with the ex-dividend date set for September 4, record date September 7, and payment date September 14. The dividend implies an annualized yield of about 0.3%.
• The company’s dividend appears well covered by earnings, with a payout ratio of 8.7% and an expected future payout ratio of 5.9% based on analyst EPS estimates.
• Alphabet also reported strong quarterly results, including EPS of $9.11 versus the $2.89 consensus and revenue of $119.8 billion versus $117.07 billion expected, even as the stock traded down 7.1% on the day.

Alphabet Inc. (NASDAQ:GOOGL - Get Free Report) announced a quarterly dividend on Wednesday, July 22nd. Investors of record on Monday, September 7th will be paid a dividend of 0.22 per share by the information services provider on Monday, September 14th. This represents a c) dividend on an annualized basis and a yield of 0.3%. The ex-dividend date is Friday, September 4th.

Alphabet has a payout ratio of 8.7% indicating that its dividend is sufficiently covered by earnings. Analysts expect Alphabet to earn $14.87 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 5.9%.

Alphabet Trading Down 7.1%

NASDAQ GOOGL traded down $24.40 on Thursday, hitting $317.69. 69,110,670 shares of the stock were exchanged, compared to its average volume of 32,519,820. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.92 and a current ratio of 1.92. Alphabet has a 52-week low of $187.82 and a 52-week high of $408.61. The firm has a market capitalization of $3.85 trillion, a P/E ratio of 24.23, a P/E/G ratio of 1.44 and a beta of 1.24. The stock has a fifty day moving average price of $366.14 and a two-hundred day moving average price of $338.86.

Alphabet (NASDAQ:GOOGL - Get Free Report) last announced its earnings results on Wednesday, July 22nd. The information services provider reported $9.11 earnings per share for the quarter, beating the consensus estimate of $2.89 by $6.22. The business had revenue of $119.80 billion for the quarter, compared to the consensus estimate of $117.07 billion. Alphabet had a net margin of 37.92% and a return on equity of 38.99%. Research analysts forecast that Alphabet will post 14.34 EPS for the current fiscal year.

Analysts Set New Price Targets

Several brokerages recently commented on GOOGL. CICC Research upped their price target on shares of Alphabet from $388.00 to $407.91 and gave the company an "outperform" rating in a report on Friday, May 1st. New Street Research raised their price objective on shares of Alphabet from $450.00 to $455.00 and gave the stock a "buy" rating in a research note on Friday, June 5th. Freedom Capital lowered Alphabet from a "strong-buy" rating to a "hold" rating in a research report on Monday, May 4th. Barclays reaffirmed an "overweight" rating and set a $425.00 target price (up from $405.00) on shares of Alphabet in a research note on Thursday. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $450.00 price target on shares of Alphabet in a report on Wednesday, June 3rd. Three research analysts have rated the stock with a Strong Buy rating, forty-seven have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, Alphabet presently has an average rating of "Moderate Buy" and an average target price of $416.02.

About Alphabet

Alphabet Inc is the holding company created in 2015 to organize Google and a portfolio of businesses developing technologies beyond Google’s core internet services. Its principal operations are led by Google, which builds and operates consumer-facing products such as Google Search, YouTube, Android, Chrome, Gmail, Google Maps and Google Workspace, as well as advertising platforms (Google Ads and AdSense) that historically generate the majority of its revenue. Google also develops consumer hardware (Pixel phones, Nest smart-home devices, Chromecast) and developer and distribution platforms such as Google Play.

Beyond Google’s consumer and advertising businesses, Alphabet invests in enterprise and infrastructure offerings through Google Cloud, which provides cloud computing, data analytics and productivity services to businesses and institutions.

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