This article first appeared on GuruFocus.
Alphabet Inc. (NASDAQ:GOOG) looks set to deliver another small dividend bump as rising AI spending continues to take priority heading into its April 29 earnings.
Analysts broadly expect just a $0.01 increase to the quarterly payout, with buybacks likely staying close to the usual ~$70 billion range. Alphabet raised its dividend 5% last year to $0.21 per share, and the stock currently yields about 0.25%. Its payout ratio remains under 8%, which on paper gives the company plenty of room to do more, but that does not seem to be the focus right now.
Instead, management appears firmly locked in on scaling AI infrastructure, with some estimates pointing to capex potentially doubling from 2025 levels. That kind of spending makes it harder to justify meaningfully higher payouts, even with a strong balance sheet. Analysts see this as a deliberate choice rather than a constraint.
