You Can Now Invest in Alphabet With a 6% Dividend Yield, but There's a Catch

Alphabet raised $85 billion through mandatory convertible preferred stock (GOOGM and GOOGN) offering a 6% dividend yield. However, these shares will automatically convert to common stock on May 15, 2029, after which the yield will drop significantly. The conversion has price caps that limit both upside and downside potential, making them suitable only for short-term income investors rather than those bullish on long-term Alphabet growth.