GOOGL Capital Return Hits $343 Bil in 10 Years
In the last decade, Alphabet (GOOGL) has returned a massive $343 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, GOOGL has returned the 3rd highest amount to shareholders in history.
| GOOGL | S&P Median | |
|---|---|---|
| Dividends | $12 Bil | $4.5 Bil |
| Share Repurchase | $331 Bil | $5.5 Bil |
| Total Returned | $343 Bil | $9.1 Bil |
| Total Returned as % of Current Market Cap | 11.5% | 25.4% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more companies like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Companies By Total Shareholder Return
- How To Earn 9.2% Yield While Waiting to Buy LLY 30% Cheaper
- Could Accenture Stock’s Cash Flow Spark the Next Rally?
- Years of Rewards: $35 Bil From Charter Communications Stock
- McDonald’s Stock Capital Return Hits $35 Bil
- Palo Alto Networks Stock at Support Zone – Bargain or Trap?
- Super Micro Computer Stock Pulls Back to Support – Smart Entry?
| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $847 Bil | 22.1% | $141 Bil | $706 Bil |
| MSFT | $364 Bil | 9.7% | $165 Bil | $199 Bil |
| GOOGL | $343 Bil | 11.5% | $12 Bil | $331 Bil |
| XOM | $212 Bil | 42.4% | $145 Bil | $67 Bil |
| WFC | $208 Bil | 76.4% | $59 Bil | $150 Bil |
| META | $178 Bil | 9.5% | $7.7 Bil | $171 Bil |
| JPM | $174 Bil | 19.9% | $0.0 | $174 Bil |
| ORCL | $163 Bil | 19.9% | $34 Bil | $129 Bil |
| JNJ | $157 Bil | 36.6% | $104 Bil | $52 Bil |
| CVX | $153 Bil | 55.2% | $97 Bil | $55 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Companies like META and MSFT are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for GOOGL. (see Buy or Sell GOOGL Stock for more details)
GOOGL Fundamentals
- Revenue Growth: 13.1% LTM and 10.2% last 3-year average.
- Cash Generation: Nearly 18.0% free cash flow margin and 32.7% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for GOOGL was 4.1%.
- Valuation: GOOGL trades at a P/E multiple of 25.9
- Opportunity vs S&P: Compared to S&P, you get higher valuation, higher revenue growth, and better margins
| GOOGL | S&P Median | |
|---|---|---|
| Sector | Communication Services | – |
| Industry | Interactive Media & Services | – |
| PE Ratio | 25.9 | 23.8 |
|
|
||
| LTM* Revenue Growth | 13.1% | 5.1% |
| 3Y Average Annual Revenue Growth | 10.2% | 5.3% |
| Min Annual Revenue Growth Last 3Y | 4.1% | -0.1% |
|
|
||
| LTM* Operating Margin | 32.7% | 18.6% |
| 3Y Average Operating Margin | 29.4% | 17.8% |
| LTM* Free Cash Flow Margin | 18.0% | 13.3% |
*LTM: Last Twelve Months
That’s a good overview, but evaluating a stock from an investment perspective involves much more. That is exactly what Trefis High Quality Portfolio does. It is designed to reduce stock-specific risk while giving upside exposure.
GOOGL Historical Risk
That said, GOOGL isn’t immune to big drops. It fell 65% in the Global Financial Crisis, lost about 44% in the inflation shock, and saw pullbacks near 31% during the Covid pandemic. Even the milder corrections, like 2018, led to a dip of around 23%. Strong fundamentals matter, but when volatility hits, even top stocks take a hit.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.