Will Datadog Ever Pay A Dividend?

Sure Dividend believes that the best way to build wealth over the long-term is by investing in companies with long track records of dividend growth. That is why we often highlight the Dividend Aristocrats, a group of 65 stocks in the S&P 500 with at least a quarter-century of dividend growth, as an excellent place for investors to find high-quality dividend stocks.

That said, we understand that investors might find growth stocks, especially in the technology sector, an attractive investment vehicle.

One name that has become popular among investors is Datadog, Inc. (DDOG). Datadog had its initial public offering on September 10, 2019. The stock opened up with an IPO price of $27 before climbing 39% at the end of its first trading day. Shares of Datadog has been riding an incredible hot streak as the stock is up more than 138% in 2020, which compares quite favorably to the 10.2% return of the S&P 500 index.

Datadog does not yet pay a dividend, but this isn’t unusual for young technology stocks. Many others didn’t pay a dividend for quite some time and others, like Alphabet (GOOGL), still do not distribute one to shareholders.

Income orientated investors interested in Datadog might want to know if Datadog will ever pay a dividend. This article will examine the company, its growth prospects, and whether or not investors can expect a dividend in the future.

Business Overview

Datadog provides monitoring and analytics platforms for developers as well operations teams and business users in the cloud. The company’s software-as-a-subscription platform, or SaaS, integrates and automates infrastructure monitoring, application performance monitoring, and log management.

Essentially, Datadog’s platform ensures that developers and administrators’ applications and infrastructure are working correctly. The company’s software is able to track performance running in public clouds and data centers.

Datadog competes head to head with some of the largest names in cloud and software, like Amazon (AMZN), Cisco Systems (CSCO), and Microsoft Corporation (MSFT).

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Disclosure: Sure Dividend is published as an information service. It includes opinions as to buying, selling and holding various stocks and other securities.

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