Alphabet’s Cash Boom Is Raising Dividend Hopes on Wall Street
- Investors see starting a dividend as a way to boost the stock
- Free cash flow is expected to hit a record $83 billion in 2024
The company’s free cash flow is projected to hit a record $83 billion in 2024.
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Alphabet Inc. is bringing in so much cash that hopes are rising it will take a page out of the Meta Platforms Inc. playbook and start paying a dividend.
The search giant has been plowing excess cash into share buybacks for years and many investors expect another $70 billion to be earmarked when Alphabet reports earnings on April 25. But analysts from JPMorgan Chase & Co. to Truist Securities are among those that see a small dividend as a way to move the needle further for the stock, similar to Meta’s February move that helped fuel a 20% jump in shares.