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When tech giants start to pay dividends
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Alphabet recently announced a dividend of 20 US cents a share, sparking a 10 per cent gain in the shares of the Google parent.
PHOTO: REUTERS
After years of chasing growth at all costs, tech firms are taking a page from the playbook of old-school value businesses – paying a dividend. Throwing off more cash than they can spend, the shift to a regular payout provides more evidence of the companies’ financial strength.
Various technology companies have introduced quarterly payouts in 2024, and while the yields are small, the news sparked huge rallies in their stocks as investors took the initiations as a sign that the group can continue to deliver robust cash flows.
