Alphabet and Meta platforms are leaders of their technological arenas and have attractive perspectives.
Both companies have the qualities of forever investment.
They both started paying dividends last year.
10 shares we like better than the alphabet ›
Alphabet(Nasdaq: goog)(Nasdaq: googl) and Meta platforms(Nasdaq: Meta) There are two well -known shares that people tend to connect with online search, social media or artificial intelligence (AI). Even among investors, these technological leaders hardly cause dividend investing. Yet, alphabetical and meta platforms are dividend payments, and although this is not the most important reason for buying their shares, this certainly does not make them less attractive. These technological shares for dividends are great options for buying and forbid.
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Alphabet shares fell last week in response to news that Apple He plans to add an AI search option to his Safari browser. Some investors have seen that development as a threat to the dominance of online Google search, which would be a problem, given that Alphabet generates a lion’s share of its revenue through this business. None of this changes Alphabet’s prospects. This will not be the first time someone has tried to lower Google’s dominance.
Recently, Microsoft Added AI functionality to its Bing search engine – but so far it hardly made a recess in the Alphabet search empire. One of the strengths of Alphabet, which makes it difficult for competitors to fight a market share away from it in this industry, is its brand. Google is intimately tied to what it does. It is almost automatic to contact Google for online requests. It will be extremely difficult for every rival to make people change this behavior.
However, Google also takes advantage of the network effect. The more demand volume maintains, the more data alphabet can collect to improve and finely adjust the search results, which attracts even more volume. In addition, Alphabet also added an AI review of its search results, with some success.
Alphabet must remain the leader in his niche for a long time and take advantage of the increasing demand for digital advertising. The company has several other growth pathways. His efforts in cloud calculations (which improves only thanks to AI) and streaming through YouTube are increasingly paying off. The company ended 2024 with a combined rate of $ 110 billion in YouTube and Google Cloud. For context, it generated $ 350 billion in total revenue last year.
Alphabet takes advantage of the network effect and switching costs in its stream and cloud computing enterprises. So, the company is a leader in several technological segments, generates excellent financial results, has a competitive advantage and has a significant runway for growth – all the things that companies have been presenting for many decades tend to have. Finally, Alphabet initiated a dividend in 2024 and is currently offering $ 0.21 per share quarterly payment. At the current price of the shares, this gives it a profitability of about 0.5%.
The action is still at the beginning of your dividend trip, but there are other excellent reasons to buy it and keep it forever. The dividend is the cherry on the cake.
Although there is more competition in the landscape of social media than in its early days, Meta platforms remained the undisputed leader, at least in terms of the number of people using his services. Meta boasts 3.43 billion active active users on their websites and applications that include Instagram, Facebook, Messenger and WhatsApp. He makes the bigger part of his advertising money.
Recent initiatives have helped to strengthen this already profitable business. The company has increased its engagement thanks to AI-feeding algorithms. It should be noted that meta platforms also benefit from the network effect. Get Instagram that helps friends and family members to keep in touch and share photos and give business and influential ways to promote products and brands. The more people are on the platform, the more effective it becomes for these purposes. Therefore, it will be difficult to demolish the metal platforms from his throne and his efforts to strengthen the commitment of his platform must allow it to continue to attract a lot of advertising volume.
The company also pursues other growth opportunities. He has doubled on AI. Although it is not yet revenue from its large language model Llama and other AI -based initiatives, it will no doubt, in the end, strive to do so, given the company’s significant investment in AI infrastructure. Meta Platforms has other initiatives that could be paid along the way, including its ambitious metabolism.
The most important thing is that the company can create an array of revenue provision schemes to earn from all these active users. This is a key reason META platforms looks like a forever food. The excellent major business of the company should allow it to perform a lot in the long run and maintain its freshly initiated dividend program. The company distributes a three -month payment of $ 0.53 per share, which at the current price of the shares gives it a profitability of about 0.3%. Growth -oriented investors can increase their long -term returns by buying Meta platforms and reinvesting their dividends.
Before you buy a stock in Alphabet, think about this:
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Susan Frey, CEO of Alphabet, is a member of the Board of Directors of Motley Fool. Randy Zuckerberg, a former director of the Facebook Development Market and a sister of Meta Platforms CEO Mark Zuckerberg, is a member of the Board of Directors of Motley Fool. Proser Junior Bakiny has positions in meta platforms. Motley Fool has positions and recommends Alphabet, Apple, Meta platforms and Microsoft. Motley Fool recommends the following options: Long January 2026. $ 395 Microsoft calls and short January 2026 $ 405 Microsoft calls. Motley Fool has a policy of disclosure.
2 technological shares for dividends to buy and detention forever were originally published by The Motley Fool
