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Should Google Pay a Dividend?

By Andrew Tonner - Apr 14, 2013 at 11:00AM

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As Google gets bigger and bigger, is it time to pay investors back?

Google is currently sitting on $50 billion in cash. Should the company pay a dividend? In this video, Andrew Tonner looks at why he thinks it won't happen. For starters, even though Google can fund much of its research activities with its current cash flow, that $50 billion reserve is a nice backstop. Furthermore, paying a dividend may cause investors to perceive Google less as a cutting-edge growth company and more as a mature tech company. With projections of 20% annual growth for the next several years, that's not a perception Google wants to promote.

In time, Google may grow its bank account to the point where investors insist on a dividend, but Andrew says that time is far in the future.

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