You Can Now Invest in Alphabet With a 6% Dividend Yield, but There's a Catch
This new stock offers a high yield and exposure to the AI giant.
You Can Now Invest in Alphabet With a 6% Dividend Yield, but There's a Catch
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) initiated a dividend about two years ago, paying a minuscule $0.20 per share each quarter. It's since raised that dividend to $0.22 per quarter, for a yield of approximately 0.24% on its common stock. That's not exactly a dividend that has income investors salivating.
But investors searching for yield and exposure to the massive AI stock now have another option. Alphabet recently raised $85 billion in capital by issuing new equity. About 20% of that came in the form of mandatory convertible preferred stock. Those shares currently yield over 6%, and you can buy them right now under the tickers GOOGM (tied to Class A common stock) and GOOGN (tied to Class C shares).
Details
But there are a few important details you'll need to know before pulling the trigger on Alphabet's new high-yield shares.
Source
Originally published at www.fool.com.
