Google's Listed Income Security Offers 6.25% Yield with Limited Lifespan

Alphabet, the parent company of Google, has introduced an innovative way for income investors to earn a significant yield. On June 2, Alphabet priced what it called the largest equity capital raise in US corporate history to fund its AI infrastructure buildout. Within this raise was something new: listed income security, which allows investors to collect 6.25% from Google.

This opportunity came in the form of two series of mandatory convertible preferred stock trading on the Nasdaq as Alphabet Series A Mandatory Convertible Preferred (NASDAQ: GOOGM) and Series C Mandatory Convertible Preferred (NASDAQ: GOOGN). Each carries a $1,000 liquidation preference, pays quarterly, and converts automatically into common stock around May 15, 2029.

A depositary share 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. For example, if an investor bought GOOGM at the market price on August 14, 2026 ($49.03), their running yield would be above or below the stated coupon depending on the purchase price.