After Apple’s dividend announcement last month, eyes are now on Google for whether a shareholder payout is in its future. As of the latest quarter, Google (GOOG) has more cash as a percentage of market cap than its five largest competitors, including Apple – its cash holdings stand at $44.6 billion. (STAY AHEAD OF THE CURVE: Follow Kapitall on Twitter)
In fact, Google is the only tech company with a market cap above $125 billion that doesn’t pay a regular dividend, making investors consider whether now is the time to expect a steady payout. Google’s stock has fallen 1.5% this year, so a significant dividend yield would be welcomed by investors.
According to Bloomberg, Google is adding $2-3 billion in cash each quarter, although its recent purchase of Motorola Mobility Holdings Inc. (MMI) for $12.5 billion will be a liquidity drain.
Google’s CEO Larry Page was asked about Apple’s dividend announcement last week, and he responded “I think Apple has more cash than we do.” (via Bloomberg)
Business Section: Investing Ideas
Do you think it’s time that Google offered its investors a steady payout, or does it have better uses for its cash?
Below we list the largest tech stocks that pay sizable dividends. Do you think Google should join them?
Interactive Chart: Use the Compar-O-Matic to compare monthly performance for the stocks mentioned below:
1. Microsoft Corporation (MSFT, Earnings, Analysts, Financials): Develops, licenses, and supports a range of software products and services for various computing devices worldwide. Market cap at $254.66B. Price at $30.98. Dividend yield at 2.64%, payout ratio at 25.77%.
2. China Mobile Limited (CHL, Earnings, Analysts, Financials): Provides mobile telecommunications and related services primarily in the Mainland China. Market cap at $216.85B. Price at $54.73. Dividend yield at 3.78%, payout ratio at 43.55%.
3. Intel Corporation (INTC, Earnings, Analysts, Financials): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap at $139.47B. Price at $28.48. Dividend yield at 3.02%, payout ratio at 31.29%.
4. Siemens AG (SI, Earnings, Analysts, Financials): Operates in the industry, energy, and healthcare sectors worldwide. Market cap at $87.21B. Price at $96.36. Dividend yield at 4.08%, payout ratio at 40.81%.
5. Nippon Telegraph & Telephone Corp. (NTT, Earnings, Analysts, Financials): Provides telecommunications services to residential and business customers in Japan. Market cap at $59.17B. Price at $22.33. Dividend yield at 2.77%, payout ratio at 40.92%.
(Written by Alexander Crawford.)
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- Microsoft Corporation (MSFT, Chart, Download SEC Filings)
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- Nippon Telegraph & Telephone Corp. (NTT, Chart, Download SEC Filings)
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