Meta decides to give its first dividend and allows $50 billion buyback

Meta has declared that it will pay a quarterly dividend for the first time and has also confirmed an expanded $50 billion share buyback program. The company has planned to give a 50 cents per share dividend, aligning with competitors like Apple, Microsoft, and Oracle, all of whom have regular payouts. The board aims to issue a cash dividend every quarter, “subject to market conditions.” Meta made this announcement along with its fourth-quarter financial results, which surpassed expectations on both top and bottom lines. “Introducing a dividend just gives us a more balanced capital return program and some added flexibility in how we return capital in the future,” said Chief Financial Officer Susan Li during the company’s earnings call. Following the news, shares surged more than 14% in after-hours trading. The dividend will be distributed in March to all shareholders who are recorded as of Feb. 22. Following Meta’s impressive performance, its stock has experienced significant growth, tripling in value in 2023 and breaking its 2021 record last month. With a current market capitalization of $1 trillion, the expanded authorization represents about 5% of outstanding shares. As of December, the company had $30.9 billion available for share repurchases. It is worth noting that neither Amazon nor Alphabet have ever paid a dividend. While Microsoft issued its first dividend in 2003, Oracle’s was initiated in 2009.

Author: OpenAI