Dividends and Google propels Alphabet to record revenue

Alphabet is one of the largest tech companies and if you own an index fund whether it is tech related or index of the market it is likely there and that is good. Alphabet’s is a very profitable stock and when you look at its divisions, there are 7 divisions that are billion dollar divisions. People use Google search as they shopped on line and advertisers followed shoppers with larger budgets.

In an article by Paresh Dave and Nivedita Balu of Reuters, Google beat expectations with sales jumping 32% to $75.3 billion in the 4th quarter for a third straight quarterly sales record.

Consumers used Google’s search for apparel and hobbyist items, while retail, finance, entertainment and travel advertisers raised marketing budgets said Google’s chief business officer Phillip Schindler.

Analysts said, Google generates more revenue from internet ads than any other company. It seems the growth will continue to move upwards.

Shares of Alphabet rose after the company announced it will be splitting 20 for 1 share on July 1.

For the full year, Alphabet’s sales rose 41% to $258 billion.

You Tube’s revenues increased, Google Cloud increased quarterly revenue by 45% to $5.5 billion.

Alphabet’s quarterly profit was $20.6 billion or $30.69 a share.

Linking to dividend paying stocks, a company similar to P &G with its numerous divisions of over $1 billion allows dividends to be increased for decades. Alphabet will be one of those companies as it continues to be a very profitable company. It is company to buy and hold and buying before the split is a good thing to do.

There are more questions than answers, till the next time – to raising questions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s