Meta Breaks New Ground with First-Ever Dividend Amidst Record Profits

By Consultants Review Team Friday, 02 February 2024

Meta, the tech giant, has exceeded market expectations with robust earnings, leading to a momentous announcement of its inaugural dividend. The company's soaring profits and record-breaking stock performance have paved the way for this historic move. In its latest earnings report for the fourth quarter and fiscal year of 2023, Meta revealed a dividend declaration of $0.50 per share.

This landmark decision underscores Meta's confidence in its financial standing, with the dividend set to be a regular feature, contingent upon market conditions and board approval. Meta's Chief Financial Officer, Susan Li, affirmed during the earnings call that the dividends would be disbursed quarterly, marking a significant step in the company's financial strategy.

The inaugural dividend is scheduled to be paid on March 26, 2024, to stockholders recorded as of the close of business on February 22, 2024. Meta now joins the ranks of other tech giants like Microsoft, Apple, and Oracle in embracing a dividend payment model. Simultaneously, the company has also greenlit a substantial $50 billion share buyback initiative.

Meta's stock experienced an impressive surge of nearly 14% in after-hours trading following the dividend announcement, reaching an unprecedented all-time high. The company's stellar financial performance for the year 2023 is reflected in its reported $134.9 billion in revenue, marking a 16% increase from the previous year, and a net income of $39.1 billion, demonstrating a substantial 69% year-over-year growth.

Meta's CEO, Mark Zuckerberg, expressed satisfaction with the quarter's results, stating, "We had a good quarter as our community and business continue to grow." This dividend declaration and share buyback initiative not only showcase Meta's financial prowess but also position the company for sustained growth and shareholder value in the dynamic tech landscape.

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