Written by Alexander Crawford
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 (Nasdaq: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.
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 the time to expect a steady payout is now. 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 it's recent purchase of Motorola Mobility Holdings Inc. (NYSE: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)
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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? (Click here to access free, interactive tools to analyze these ideas.)
1. Microsoft Corporation (Nasdaq:MSFT): Develops, licenses and supports a range of software products and services for various computing devices worldwide. It has a market cap at $254.66B, price is at $30.98, dividend yield is at 2.64% and payout ratio is at 25.77%.
2. China Mobile Limited (NYSE:CHL): Provides mobile telecommunications and related services primarily in mainland China. It has a market cap at $216.85B, price is at $54.73, dividend yield is at 3.78% and payout ratio is at 43.55%.
3. Intel Corporation (Nasdaq:INTC): Engages in the design, manufacturing and sale of integrated circuits for computing and communications industries worldwide. It has a market cap at $139.47B, price is at $28.48, dividend yield is at 3.02% and payout ratio is at 31.29%.
4. Siemens AG (NYSE:SI): Operates in the industry, energy and healthcare sectors worldwide. It has a market cap at $87.21B, price is at $96.36, dividend yield is at 4.08% and payout ratio is at 40.81%.
5. Nippon Telegraph & Telephone Corp. (NYSE:NTT): Provides telecommunications services to residential and business customers in Japan. It has a market cap at $59.17B, price is at $22.33, dividend yield is at 2.77% and payout ratio is at 40.92%.
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Kapitall's Alexander Crawford does not own any of the shares mentioned above.