2024

Alphabet

Meta

<p>The stock market has been stirred by Meta’s revelation of its first quarterly dividend. This move, unusual in the technology sector, could set a precedent for other tech giants like Alphabet and Amazon. That’s the view put forward by a team of analysts at Goldman Sachs, who see this trend as good news for investors seeking income.</p> 
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     <p lang="en" dir="ltr">Alphabet <a href="https://twitter.com/search?q=%24GOOGL&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GOOGL</a> and Amazon <a href="https://twitter.com/search?q=%24AMZN&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$AMZN</a> likely to follow Meta's lead by announcing their first ever dividend payments this year according to Goldman Sachs <a href="https://t.co/rRcUCeTelJ">pic.twitter.com/rRcUCeTelJ</a></p>— Barchart (@Barchart) <a href="https://twitter.com/Barchart/status/1757363235450147182?ref_src=twsrc%5Etfw">February 13, 2024</a>
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<h2 id="stock-market-dividends-an-asset-for-sp-500-companies-in-2024">Stock Market: Dividends, an Asset for S&amp;P 500 Companies in 2024</h2> 
<p><a href="https://www.cointribune.com/en/bitcoin-sp-500-are-markets-too-overvalued/" target="_blank" rel="noreferrer noopener">S&amp;P 500</a> companies are expected to pay out more dividends in 2024, according to Goldman Sachs. Alphabet and Amazon could indeed follow Meta’s lead and announce their first dividends ever.</p>
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<p>Dividends serve as a support factor for stock prices. They lower the cost of capital and increase stock yields.</p> 
<h2 id="why-can-meta-alphabet-and-amazon-afford-to-pay-dividends">Why can Meta, Alphabet, and Amazon afford to pay dividends?</h2> 
<p>In the stock market, Meta, Alphabet, and <a href="https://www.cointribune.com/en/jeff-bezos-liquidates-a-portion-of-amazon-on-the-stock-market-for-2-billion/" target="_blank" rel="noreferrer noopener">Amazon</a> are among the seven technology companies that drove S&amp;P 500 growth in 2023.</p> 
<p>Meta announced a dividend of 50 cents per share, payable on March 26th. According to stock market data, it reported a net profit of $14.02 billion in the fourth quarter of 2023, representing a 201% increase year-over-year. The stock surged by 20% the day after this announcement.</p> 
<p>Alphabet and Amazon could follow the same path, according to <a href="https://twitter.com/Barchart/status/1757363235450147182/photo/1" target="_blank" rel="noreferrer noopener">Goldman Sachs</a>. The latter believes these companies have enough liquidity to pay dividends while continuing to invest in innovation.</p> 
<p>Alphabet posted a net profit of $22.3 billion in the fourth quarter of 2023, up 51% year-over-year. Amazon, on the other hand, reported a net profit of $8.9 billion, up 118% year-over-year.</p> 
<p>In any case, the <a href="https://www.cointribune.com/en/stock-exchange-markets-are-preparing-to-experience-a-very-high-risk-sequence/" target="_blank" rel="noreferrer noopener">current trend</a> in the stock market could be favorable to investors. Stay tuned…</p>

Market Frenzy: Goldman Sachs Predicts a Record Year for S&P 500 Companies

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