Updated on September 25th, 2025 by Bob Ciura
In recent years, technology stocks like Alphabet (GOOG)(GOOGL) and Meta Platforms (META) have embraced the practice of paying dividends to their shareholders. However, not every tech company has followed suit. A notable exception is Amazon.com Inc. (AMZN), the e-commerce giant that has yet to initiate dividend payments.
Instead of distributing cash to shareholders, Amazon reinvests its cash flow back into the business. The decision to pay dividends is influenced by various factors, and while thousands of stocks do offer dividends, only a select few have a long-standing history of increasing their payouts annually.
For instance, the Dividend Aristocrats comprise 69 stocks in the S&P 500 that have raised their dividends for over 25 consecutive years. You can download an Excel spreadsheet containing all Dividend Aristocrats, along with key financial metrics like price-to-earnings ratios and dividend yields, by clicking the link below:
Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.
Despite not paying dividends, Amazon has proven to be a lucrative investment, generating total returns of over 700% over the past decade. However, for income-focused investors, the absence of dividends makes Amazon less appealing.
Business Overview
Amazon operates a vast e-commerce platform, allowing consumers to purchase a wide array of products online. As a mega-cap stock with a market capitalization exceeding $2 trillion, Amazon’s operations are divided into three segments:
- North America
- International
- Amazon Web Services (AWS)
The North America and International segments encompass the global retail platform, while AWS provides cloud computing and storage services to various clients, including government agencies and academic institutions.
Amazon’s e-commerce operations have driven significant revenue growth, with the company reporting a revenue of $167.7 billion in the second quarter of 2025, surpassing analyst expectations by $5.59 billion. This represents a 12% year-over-year increase on a currency-neutral basis.
Sales in North America rose by 11% to $100.1 billion, while international sales grew by 16% to $36.8 billion. AWS also saw a 17.5% increase in sales, totaling $30.9 billion. Earnings per share rose by 33% to $1.68 during this period.
While Amazon’s retail operations maintain low gross margins, they continue to generate robust revenue growth. The AWS segment, known for its high profitability, significantly contributes to Amazon’s impressive earnings growth, enhancing the company’s potential to pay dividends in the future.
Growth Prospects
For Amazon, growth investment remains the primary strategic focus. The fast-paced nature of the technology sector necessitates substantial investment to stay competitive. Amazon is actively expanding its online retail platform and has made significant acquisitions, such as Whole Foods, to enhance its grocery reach.
Additionally, Amazon is venturing into other industries, including media and healthcare. The company has developed a media platform for its Amazon Prime members and made substantial investments in original content to compete with streaming giants like Netflix (NFLX) and Hulu. Its acquisition of MGM for $8.5 billion further solidifies its media ambitions.
In 2022, Amazon acquired One Medical for $3.9 billion, marking its entry into the healthcare sector. These investments are expected to drive revenue growth, but they also limit Amazon’s capacity to pay dividends in the near term. For the third quarter of 2025, Amazon anticipates net sales between $174.0 billion and $179.5 billion, reflecting a year-over-year growth of 10% to 13%.
Will Amazon Ever Pay A Dividend?
Amazon has become profitable, joining the ranks of tech companies like Apple, Microsoft, and Cisco, which are known for their dividend payments. Theoretically, Amazon could initiate a dividend, especially with projected earnings per share of $6.70 for fiscal 2025.
While the company could allocate profits for dividends, debt repayment, or reinvestment, any potential dividend would likely be modest. For instance, a 25% payout ratio would yield a dividend of $1.67 per share, equating to a yield of approximately 0.7%, which may not attract many income investors.
At Sure Dividend, we advocate for investing in companies with a high likelihood of increasing their dividends annually. If this strategy resonates with you, consider exploring our databases of dividend growth stocks:
- The Dividend Achievers List includes around 400 stocks with 10+ years of consecutive dividend increases.
- The Dividend Kings List features 56 stocks with 50+ years of consecutive dividend increases.
- The High Yield Dividend Kings List showcases the 20 Dividend Kings with the highest current yields.
- The Blue Chip Stocks List includes stocks that qualify as Dividend Achievers, Dividend Aristocrats, and/or Dividend Kings.
- The High Dividend Stocks List features stocks appealing to investors seeking yields of 5% or more.
- The Monthly Dividend Stocks List includes stocks that pay dividends every month.
- The Dividend Champions List consists of stocks that have increased their dividends for 25+ consecutive years.
- The Dividend Contenders List features stocks with 10-24 consecutive years of dividend increases.
- The Dividend Challengers List includes stocks with 5-9 consecutive years of dividend increases.
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