Buybacks @Buybacks: "Alphabet issues first-ever dividend, $70..."

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Alphabet issues first-ever dividend, $70 billion buyback. 👉 $GOOGL (Alphabet Inc Class A) said Thursday that it’s issuing a $0.20 per share dividend, the company’s first ever, and that its board authorized the repurchase of up to $70 billion in stock. 👉 The company’s move comes after $META (Meta Platforms Inc) ’s board authorized its first ever dividend in February. Google’s parent company had $108 billion in cash and marketable securities on hand as of March 31, 2024. 👉 Shares shot up 15% in after hours trading. The news was announced alongside better-than-expected first-quarter earnings. Alphabet authorized an identically sized repurchase exactly one year ago, during a period of intense cost-cutting and layoffs. 👉 The dividend is payable to all class of shares, including super-voting Class B shareholders, as well as nonvoting Class C shareholders. Most Google investors own the company through Class A shares. All shareholders of record as of June 10 will receive the dividend the same month. 👉 Co-founder Sergey Brin, who owns more than 730 million Class B and C shares, will receive a $146 million payout. Co-founder Larry Page, who owns 389 million Class B shares, will get a dividend payment of $78 million. 👉 Investors have been looking for signs of maturity from technology firms. Every major tech firm announced layoffs and tightened spending beginning in 2022. Investors rewarded those efforts, and have shown a similar reaction to share buybacks and dividend initiations. When Meta announced its first ever dividend in February, it helped send shares soaring more than 14%. 👉 Notably, $AMZN (Amazon.com Inc) has never issued a dividend, nor has it ever authorized a share buyback close to the size of Google’s. Amazon’s largest share repurchase, in 2022, was for up to $10 billion. ❓ Read more at: www.cnbc.com/2024/04/25/alphabet-issues-first-ever-dividend-70-billion-buyback.html ✨ $GOOGL is part of eToro’s @Buybacks Smart Portfolio. This portfolio allocates capital to companies in various sectors that frequently engage in stock repurchases, also known as share buybacks, enphasizing lower dividend payments for tax efficiency. @Buybacks is a new eToro's Smart Portfolio, and is available for a minimum investment of $500. Your capital is at risk. Past performance is not an indication of future results.

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