Wondering if you should invest your money into Alphabet Google stock? Investment choices require careful research to ensure your money goes to a place where you feel confident it will grow.
As the holding company for the world’s most popular search engine, it may be a worthwhile investment for your finances. Below, we’re covering its stock price history, dividends, and more so that you can decide if Alphabet Google stock is a reliable way to strengthen your portfolio.
History of Alphabet Inc.
Alphabet Inc. originally began as Google back in 1998. Founders Larry Page and Sergey Brin developed it into one of the biggest companies in the world. Google is the world’s most popular search engine, accounting for 92% share of the global search market.
In the last two decades, Google has diversified quite a bit, and in 2015, it reorganized as Alphabet Inc. The parent company holds Google and other subsidiaries. You can find Alphabet Google stock listed as GOOGL for Class A and GOOG for Class C on the NASDAQ stock exchange.
Stock Price History
When Alphabet Inc. debuted on the stock market, it became the new hot spot for Wall Street investors. The company increased its market capital by a whopping 27.2 billion by the end of the first day, making it worth more than General Motors or Ford within 24 hours.
Alphabet’s all-time high closing price hit $2,118.62 on February 17, 2021. Its annual highest stock price is $2,145.14, currently 5.5% above the current share price.
On the other hand, its annual lowest stock price hit $1075.08, which is 47.1% lower than it is now.
The company’s average stock price for the past year is right at $1618.76.
Historically, this stock has performed exceptionally well on the NASDAQ stock exchange. Let’s take a look at how the dividends have fared.
Google Alphabet has never paid out any cash dividends to its shareholders to this day. Many technology companies pay out stock dividends or cash distributions to their shareholders, but Alphabet Inc. has not.
Many investors and industry experts have pressured the company to start doing so, but it has yet to take any such actions.
Dividends traditionally show a stable financial performance and assure stockholders of a steady revenue flow and profits. They are typically the main reason investors buy stocks in companies.
Alphabet has not directly addressed the calls for dividends or cash distributions, but many assume it is because Google has used the funds for its new ventures, namely, the top-secret research at Google X.
Interesting Facts You May Not Know About Alphabet Google
If you’re still on the fence about investing in Alphabet Google stock, here are some interesting facts that you may not know.
- Google is constantly evolving. Early versions of the search engine processed 50 pages per second, and now the engines can process millions of pages simultaneously.
- Alphabet Inc.’s creation was in part to avoid further antitrust lawsuits against Google’s monopoly on internet searches.
- The consolidation of organizations also created a new structure of power, where Page and Brin hold the majority of influence to avoid any company shifting due to investor pressure.
If you don’t care much about dividends or cash distributions and are more interested in supporting technological advancements, investing in Alphabet Google stock could be a good money move to make. While the holding company is relatively new, its share of the market and strong history make it a good contender for investments.