Breaking Views: Google Should Pay A Dividend

Interesting idea from Breaking Views in Friday’s Telegraph: “Google Needs To Grow Up And Pay A Dividend”.  Personally, I’d love to see that.  Last year net income was $6.2 billion and free cash flow $5.6 billion.  They also had $15.8 billion in cash and short term investments on their balance sheet at the end of the year.

Why not pay out, say, $1 billion a year in dividends?  With 315.3 million shares oustanding as of Jan 31, 2009, that would be $3.17 a share per year resulting in a dividend yield around 1%.  That would be a good start and another little enticement to owning shares.

Disclosure: Top Gun is long shares of Google (GOOG).

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