GOOGL vs T: Dividend Yield, Growth & Safety Comparison
Alphabet Inc. (GOOGL) and At&T Inc. (T) are both in the Communication Services sector, making them natural rivals for dividend investors. T offers a significantly higher 4.05% yield compared to GOOGL's 0.27%, a gap of 3.78%. Both stocks carry a "Safe" dividend safety rating.
Key Metrics Comparison
| Metric | GOOGL | T |
|---|
| Dividend Yield | 0.27% | 4.05% |
| Annual Dividend | $0.84 | $1.11 |
| 5-Year CAGR | N/A | -8.1% |
| Payout Ratio | 8% | 27% |
| Consecutive Years | N/A | 0 |
| Price | $306.62 | $28.68 |
Yield Comparison
At&T Inc. (T) currently yields 4.05%, which is attractive for the broader market. That's 3.78% more than Alphabet Inc. (GOOGL), which yields 0.27%. In dollar terms, T pays $1.11/share annually versus GOOGL's $0.84/share.
Dividend Growth
T has a 5-year dividend CAGR of -8.1%. Growth data is not available for GOOGL. T: Dividend growth is accelerating — the 3-year CAGR of 15.5% exceeds the 5-year rate of -8.1% and the 10-year rate of -2.8%.
Dividend Safety
GOOGL's dividend safety is rated "Safe." The payout ratio of 8% is well within sustainable levels, leaving room for future increases. T's dividend safety is rated "Safe." The payout ratio of 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x. GOOGL's payout ratio of 8% is more conservative than T's 27%, suggesting more room for future increases.
Income Comparison
A $10,000 investment in T generates approximately $405/year in dividend income, compared to $27/year from GOOGL — a difference of $378/year. At $100,000, that gap widens to $3780/year.
Verdict
- Best for income: T
- Best for safety: GOOGL
Frequently Asked Questions
Which has a higher dividend yield, GOOGL or T?
At&T Inc. (T) has a higher dividend yield of 4.05% compared to Alphabet Inc. (GOOGL) at 0.27%.
Which is safer for dividend income, GOOGL or T?
Alphabet Inc.'s dividend safety is rated "Safe" while At&T Inc. is rated "Safe." The payout ratio of 8% is well within sustainable levels, leaving room for future increases. The payout ratio of 27% is well within sustainable levels, leaving room for future increases. Earnings cover the dividend 2.7x.
How much income does $10,000 in GOOGL vs T generate?
A $10,000 investment in GOOGL generates approximately $27/year in dividends, while the same amount in T generates about $405/year.
Which has a lower payout ratio, GOOGL or T?
Alphabet Inc. has a lower payout ratio of 8% compared to At&T Inc.'s 27%. A lower payout ratio generally indicates more room for dividend growth and better sustainability.
GOOGL vs T: which is better for retirement income?
It depends on your priorities. T for current income, GOOGL for safety. Many retirement investors hold both for diversification.
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