GOOGM and GOOGN deliver a 6.25% annual coupon and represent Google's first-ever listed income securities, but they automatically convert to GOOGL common stock in 2029. With GOOGL up 71% over the past year, GOOGM's conversion cap limits further upside while holders absorb full downside below the lower threshold. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and GOOGM didn't make the cut.
Grab the names FREE today. Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has spent most of its history offering income investors almost nothing. The common stock pays a token quarterly dividend of $0.22 per share, and buybacks did the heavy lifting until this year, when the company suspended the buyback program in Q2 2026.
Things changed on June 2, when Alphabet priced what it called the largest equity capital raise in US corporate history to fund its AI infrastructure buildout. Inside that raise sat something Google had never issued before: a listed income security. Two series of mandatory convertible preferred stock now trade on the Nasdaq as Alphabet Series A Mandatory Convertible Preferred (NASDAQ: GOOGM) and Series C Mandatory Convertible Preferred (NASDAQ: GOOGN).
Each carries a 6.25% annual rate on a $1,000 liquidation preference, pays quarterly, and converts automatically into common stock around May 15, 2029. Most GOOGL shareholders are unaware that the instrument exists. A depositary share, which is what a retail investor buys under the GOOGM ticker, represents one-twentieth of a preferred share.
The declared quarterly cash dividend of $12.15 per preferred share amounts to $0.60 per depositary share, with the most recent payment sent on August 15, 2026, to holders of record on August 1. The 6.25% figure is the coupon on par; the running yield to a buyer depends on the purchase price. GOOGM closed at $49.03 on August 14, 2026, which means a buyer at market receives a running yield that can be above or below the stated coupon, depending on the purchase price.
The 10-year Treasury yields 4.63%, so the stated coupon sits well above the risk-free rate. That is a real spread on a large-cap AI leader whose Q2 2026 revenue grew 24.23% to $119.80 billion and whose Google Cloud segment grew 82% to $24.77 billion. The catch is that this income stream has a hard expiration date.
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