The tech giant raises $85 billion, including preferred shares offering a 6.25% dividend yield amid AI infrastructure expansion.
Alphabet has issued $16.75 billion in convertible preferred stock as part of a nearly $85 billion capital raise. The preferred shares offer a 6.25% dividend yield, targeting income investors amid the company’s AI infrastructure expansion efforts.
The company historically avoided dividends, reinvesting cash into growth, but initiated a $0.20 quarterly payout in June 2024, now at $0.22. Preferred stock sits above common equity in the capital structure, prioritizing payouts in liquidation scenarios.
The move reflects Alphabet’s shift toward balancing shareholder returns with heavy AI investments, though the common stock’s 0.25% yield remains unattractive to income-focused investors.