Alphabet Just Joined the Dow Jones Industrial Average. 3 Dow Dividend Stocks to Buy Now.
Alphabet is a great company, but its dividend payout is underwhelming.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is shaking up the Dow Jones Industrial Average. The Google parent joined the famed index on June 29, replacing Verizon Communications and providing additional exposure to advertising, cloud computing, artificial intelligence, and information technology.
In doing so, it joins a very select group. There are thousands of stocks on the New York Stock Exchange, but only 30 are included in the Dow, an important barometer of the overall market that encompasses key sectors such as technology, finance, and consumer stocks.
Details
There's a lot to like about Alphabet. It has a strong advertising business, with revenue from Google Search, YouTube, and the Google Network. And it has a fast-growing cloud computing segment that had 63% revenue growth in the first quarter. But one area that it's lacking is dividends -- Alphabet's dividend yield is only 0.3%, and since the company is investing so much in artificial intelligence infrastructure, it will be difficult to greatly expand its payout in the near future.
Source
Originally published at www.fool.com.