Alphabet, the parent company of Google, saw a significant rebound in its stock price after a tumultuous day for the tech sector, following its announcement of a substantial cash dividend and share buyback program.

The company declared its first quarterly cash dividend of $0.20 per share, scheduled to be paid on June 17 to shareholders as of June 10, alongside a $70 billion share repurchase initiative.

While such financial maneuvers are known to boost stock prices by rewarding investors, they often draw criticism for prioritizing shareholder returns over investment in employees or business enhancements.

In response to the announcement, Alphabet’s stock surged by as much as 13% in after-hours trading, CNN reported.

The dividend and buyback plan accompanied the company’s strong earnings report for the first quarter, which surpassed Wall Street expectations in both revenue and profits.

With revenue exceeding $80.5 billion, up 15% year-over-year, and profits growing by 57% to nearly $23.7 billion, Google demonstrated robust financial performance, outpacing analysts’ forecasts.

Written by B.C. Begley