GOOGL introduces its first listed income securities, paying a 6.25% annual coupon but converting to common stock in May 2029.
Alphabet has issued two series of mandatory convertible preferred stock, GOOGM and GOOGN, trading on the Nasdaq with a 6.25% annual coupon on a $1,000 liquidation preference. These securities mark the company’s first listed income instruments, paying quarterly dividends until automatic conversion to GOOGL common stock around May 15, 2029.
The move follows Alphabet’s $12.15 billion equity capital raise in June, the largest in US corporate history, aimed at funding AI infrastructure. The company had previously relied on buybacks, which were suspended in Q2 2026, and a nominal $0.22 quarterly dividend for income investors.
While the 6.25% yield offers income, the conversion cap limits upside potential, exposing holders to downside risk if GOOGL falls below the lower threshold. The common stock has surged 71% over the past year, reducing the appeal of the preferred shares for growth-focused investors.