Meta, the parent company of Facebook, declared its first-ever quarterly dividend of $0.50 per share, authorizing an additional $50 billion in share repurchase.
This marks a significant shift for the tech giant, adding to its financial strategy and shareholder value.Â
Meta’s financials suggest an increase in net income from $23.2 billion in 2022 to $39.098 billion in 2023 – a 69% improvement in profitability reflects the company’s strong financial health.
The financial report for the fourth quarter surpassed analysts’ expectations, reflecting robust performance across various metrics.Â
Founder and current CEO of Meta, Mark Zuckerberg, will receive $700 million a year from the first-ever dividend.Â
With a market capitalisation soaring above $1 trillion, Meta’s expanded buyback plan encompasses approximately 5% of its outstanding shares.Â
The quarterly dividend of $0.50 per share solidifies Meta’s position as a dividend-paying stock. This move aligns Meta with other tech giants like Apple and Microsoft, all of which offer regular dividend payouts.Â
The company’s board plans to sustain this dividend payment schedule, contingent upon prevailing market conditions.Â
The objective is to establish a balanced capital return program while maintaining flexibility for future capital allocation strategies.Â
The announcement of the dividend and buyback program comes amid an evolving landscape for Meta, as it continues to navigate regulatory challenges and invest in innovative technologies to drive its future growth trajectory.
