Alphabet is becoming a member of the dividend club.
In its first-quarter earnings report on Thursday, Google's parent company said it's issuing a $0.20 per share dividend, its first ever.
It'll be paid on June 17 to stockholders of record as of June 10, and Alphabet plans to pay quarterly dividends in the future, the earnings release said. The company also authorized an additional $70 billion in stock buybacks.
Its earnings also helped buoy the shares. It reported total revenue of $80.54 billion in the first quarter, beating estimates. That's about a 15% year-over-year increase.
Following the news, Alphabet's stock rose roughly 13% in after-hours trading.
It joins fellow tech companies like Microsoft, Apple, and Meta in issuing dividends. Meta announced a dividend of $0.50 per share, also its first ever, in February, as well as its own buyback boost of $50 billion.
Alphabet's announcement — and that of Microsoft, which also beat estimates — could help ease tech investors spooked by Meta's earnings call earlier this week.
Despite its earnings beat, Meta's shares fell 11% on Thursday after the company issued weak revenue guidance for Q2.
The earnings report showed Meta is going to spend more than expected this year, too, due to AI investments as well as higher infrastructure and legal costs. On Wednesday's earnings call, Meta CEO Mark Zuckerberg warned investors it could be a while before the company's AI investments pay off.
Meantime, Alphabet CEO Sundar Pichai said in its earnings release that "our leadership in AI research and infrastructure, and our global product footprint, position us well for the next wave of AI innovation."
