Amazon (NASDAQ: AMZN) stands apart in the S&P 500 as the only trillion-dollar company that refrains from distributing dividends to shareholders. Despite this, Amazon possesses significant financial resources, with over $101 billion in cash and $38.2 billion in free cash flow reported in the fourth quarter. This invites the question of whether Amazon should start paying dividends in 2025. Comparatively, its peers like Microsoft and Apple successfully manage to balance growth and income through dividends, presenting a case for Amazon to follow suit as it matures.
Amazon stands alone among trillion-dollar S&P 500 stocks, uniquely refusing to pay a dividend despite its substantial cash reserves and free cash flow generation.
With over $101 billion in cash and $38.2 billion in free cash flow, Amazon's financial position justifies the argument for initiating dividends, aligning it with its mega cap peers.
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