Meta Platforms Inc. declared a quarterly dividend of $0.525 a share, up 5% from the prior payout of $0.50. The dividend is payable June 25 to stockholders of record as of June 15. The increase extends Meta's trajectory as a dividend-paying company since its first payout in 2024.
Meta Platforms Inc. declared a quarterly dividend of $0.525 a share, up 5% from the prior payout of $0.50.
The board approved the payment on the company's outstanding Class A and Class B common stock, the Menlo Park, California-based company said Thursday. The dividend is payable June 25 to stockholders of record as of June 15.
The increase extends Meta's trajectory as a dividend-paying company, a shift it began in February 2024 when it announced its first-ever quarterly payout. At the new rate, the annual dividend stands at $2.10 a share, representing a forward yield of roughly 0.4% based on recent trading levels.
Meta generated more than $60 billion in free cash flow over the past four quarters, giving it ample room to return capital to shareholders while continuing to invest heavily in artificial intelligence infrastructure. The company also maintains a $50 billion share repurchase authorization, though it did not buy back stock in the most recent quarter.
The dividend hike comes as Meta competes with other mega-cap technology companies for income-oriented investors. Apple Inc. pays a $0.25 quarterly dividend, while Microsoft Corp. distributes $0.83 a share. All three companies have used dividends and buybacks to reward shareholders as their cash piles have grown.
Meta shares have gained about 12% this year through Wednesday's close, outperforming the Nasdaq 100's 8% advance. The stock trades at roughly 22 times forward earnings, below its five-year average of 26 times, reflecting investor caution about the company's rising capital expenditure commitments.
For holders, the dividend increase shows management's confidence in Meta's cash generation even as it spends tens of billions on AI data centers. Investors will watch the company's next earnings report, expected in late July, for updated guidance on both capital spending and shareholder returns.
This article is for informational purposes only and does not constitute investment advice.
