While most shareholders find dividend stocks unexciting, it is not the case with the top seven popular stocks, namely Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta, and Tesla. The payments of dividends have recently been introduced by Meta and Alphabet, leaving Amazon and Tesla as the only two companies in this group still not paying dividends.
Tesla won’t be distributing dividends soon, owing to its current financial situation. Meanwhile, there were rumours about Amazon potentially becoming a part of the dividend-paying club, but this was prior to their latest financial reporting. When Meta declared its maiden dividend and a share buyback programme worth $50 billion, its shares surged in February.
On similar lines, Alphabet’s share price skyrocketed post robust earnings report on April 25th, allowing it to sanction its first-ever dividend and a $70 billion share buyback. Conversely, Amazon reiterated its strategy of prioritising reinvestment and using its resources to attain substantial returns. Nonetheless, the conversation about paying dividends will continue.
As pointed out by Nicholas Colas from DataTrek Research, Amazon remains the sole big tech firm not distributing any dividends.