Dividends4Life: Hey, Google: How About a Dividend, Already?

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Hey, Google: How About a Dividend, Already?

Posted by D4L | Saturday, June 27, 2015 | | 0 comments »

Note to Google (GOOGL, GOOG): It’s time grow up, wear your big-boy pants and start paying a dividend. You’re a $374 billion company, for crying out loud, and your biggest rivals — Apple (AAPL) and Microsoft Corporation (MSFT) — are among the most generous dividend payers and dividend raisers in the world. For a company that used to pride itself on its “Don’t be evil” motto, your stinginess to your long-suffering shareholders seems a little — well — evil.

Is a Google dividend really too much to ask? Let’s look at the numbers. Companies with consistent and reliable cash flows make the best dividend payers. Remember, investors who buy for dividends tend to be conservative. They hate surprises, and lumpy earnings make for an erratic dividend. Hey, I get it. You’re investing in the future, and your revenues are growing at a 40% clip. Companies at this hypergrowth stage can’t be bothered with paying a dividend. But if you did, your investors might be willing to give you the benefit of the doubt and stop complaining about your ballooning expenses. A dividend would symbolize that you’re a mature company and one that can be trusted to manage shareholder money responsibly.

Source: InvestorPlace

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