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Is Google Effectively Compelled to Pay Dividend?

Earlier in the week we wrote about whether Apple’s dividend effectively compels Google to follow suit.

After all the sentiment on the Street is that cash rich companies should return capital to shareholders.

Now everyone’s talking about it - in part because Google is cash rich. It has $44-billion in cash on the balance sheet.

Considering the mounting pressure, what should you expect?

“Apple’s dividend puts pressure on Google to keep up,” speculates Mike Murphy. And considering the lofty share price of both Google and Apple, Murphy adds, “it begs the question who will be first to do a stock split.”

Trader Karen Finerman says that although she would like to see Google return cash to shareholders, she doesn't think it will happen. “I don’t know if it forces their hand – they’ve been impervious to cries in the past – but I think they should,” she says.

Colin Gillis of BGC thinks a dividend from Google is unlikely. "They like to acquire," he says. That alone will dissuade the board from parting with their cash.

Tim Seymour adds,” I don’t know that they have a lot to give back. Apple and Google are two different stories.”

Josh Brown thinks buying Google for a dividend is a mistake. “Typically when a tech company starts a dividend it’s very small,” he reminds. “I can’t imagine a dividend being anything close to 2%.”





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Trader disclosure: On Mar 21, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long CSCO; Tim Seymour is long PEP; Tim Seymour is long DELL; Tim Seymour is long IBM; Tim Seymour is long HPQ; Tim Seymour is long AAPL; Brian Kelly is long SMH; Brian Kelly is long QQQ ; Brian Kelly is long SPY CALLS; Brian Kelly is long IWM CALLS; Brian Kelly is long MEXICAN PESO; Brian Kelly is long US DOLLAR; Brian Kelly is short EWA; Brian Kelly is short EWY; Brian Kelly is short EWH; Brian Kelly is short EWY AUSSIE $; Brian Kelly is short NEW ZEALAND $; Pete Najarian is long AAPL; Pete Najarian is long AAPL CALLS; Pete Najarian is long C; Pete Najarian is long C CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long BAC CALLS; Pete Najarian is long INTC; Pete Najarian is long YHOO; Pete Najarian is long COP; Pete Najarian is long PEP; Pete Najarian is long HPQ; Pete Najarian is long SCCO; Josh Brown is long AAPL; Josh Brown is long JPM; Josh Brown is long GDX; Josh Brown is long GLD; Josh Brown is long XLU; Josh Brown is long INTC; Josh Brown is long MRO; Josh Brown is long SBUX; Josh Brown is long COP; Josh Brown is long DELL

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