Amazon share dividend and yield

  •   HARMANT Adeline

The Amazon group has never yet paid any dividend to its shareholders in exchange for holding its shares. In this page, we propose you to discover why the very profitable group has decided not to pay its shareholders and if it intends to do so in the future.

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Amazon share dividend and yield
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Does Amazon stock allow to receive a dividend?

Amazon stock, like other large technology companies, does not pay dividends to its shareholders and has never paid any in the past. We can therefore say that this stock is not to be considered as a yielding stock but rather as a growth stock. It is usually bought by investors who have a long-term strategy and hope to realize a future capital gain by selling their shares at a higher price than the one they bought them at.

Amazon, which went public in 1997, has never paid out any of its profits to its shareholders in the form of a dividend.

 

Why doesn't Amazon pay a dividend to its shareholders?

Many stock market investors are surprised to learn that a global company like Amazon does not pay dividends to its shareholders, given that its listing on the stock market is not recent and that its profits are significant.

In order to better understand the reasons why this company does not pay its shareholders a dividend, it is important to understand in which category this company falls. Not all listed companies have the same objective for investors interested in their value.

Indeed, we observe that listed companies that pay a dividend are most often so-called mature companies such as banks and financial companies, public service companies that wish to share their profits with their shareholders.

High-growth companies, such as most technology companies, choose not to pay a dividend to their shareholders. The objective of these companies, like Amazon, is very clear and aims above all to keep cash available to invest in their growth. Indeed, when a company of this type finally starts paying a dividend, it generally means for investors that it no longer has any growth leverage.

Amazon has, however, already bought back shares in the past, but in a relatively rare and punctual manner. It has always preferred to reinvest its profits in strategic operations such as acquisitions or the development of new activities in order to diversify or gain market share.

 

Will Amazon pay a dividend in the future?

Similarly, many investors want to know if Amazon plans to pay a dividend to its shareholders in the near or distant future, given that the group's profits keep growing and are more than enough to finance strategic investments.

However, for the moment, the Amazon group has not taken the decision to pay a dividend to its shareholders in 2022 or in the years to come. It is therefore not yet known whether this stock will be able to collect a dividend in the near future.

However, the Amazon share is still recording bullish performances with, let's remember, a point gain of more than 26,000% in twenty years. Many investors are therefore hoping for a continuation of this rise in the long term.

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