Finance

Meta’s new dividend will make you richer


You can already get rich by owning stocks meta platform (Mehta).Now the brand new bonus is just a bonus.




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On Thursday, the social media giant announced plans to pay its first quarterly dividend of 50 cents per share. Annual dividends totaled $4.4 billion, ranking 31st in the S&P 500, said Howard Silverblatt of S&P Dow Jones. index.

Meta’s dividend is also large enough to lift the S&P 500’s yield by 0.74% to 1.46% from 1.45%, he said. That’s on top of the stock’s nearly 210% gain over the past year. Separately, the stock jumped more than 20% on the news in Friday trading.

But what does this mean to you?

Meta’s dividends from an S&P 500 perspective

At first glance, Meta’s dividend seems small, with a dividend yield of just 0.42% (after Friday’s increase), ranking it only 387th in the S&P 500, compared to the S&P 500’s 1.46% yield. It’s just a drop in the bucket.

But if you look at it from other perspectives, it makes a lot of sense. For one thing, Meta’s dividend ranks 12th among the Communications Services industry. For a group that owns 19 stocks, that may not sound like much.but please remember this is a group Some of the highest-yielding stocks in the S&P 500, such as Verizon (Wiz) dividend rate is 6.3%.

But this Meta dividend has growth potential. Since the company has $61 billion in cash and short-term investments, it still has plenty of upside. Additionally, it found that funds can be allocated to investors who purchase stocks solely for capital appreciation.

Just ask CEO Mark Zuckerberg.

Mark Zuckerberg’s Big Spending

Both classes of stocks will pay dividends, which would be a huge windfall for Zuckerberg, Mehta said.

Zuckerberg’s annual dividends alone will reach a staggering $694 million. This is thanks to the fact that Meta’s founders still own nearly 350 million shares, or 13.5% of the company. But large ETF investors will also benefit. Vanguard’s annual Meta dividend will reach $366.5 million.

Not bad for a new dividend.

The biggest winner in yuan dividends

meta investor Shares owned (millions) Annual dividends ($ million)
Mark Zuckerberg 347.0 $694.0
pioneer 183.2 $366.5
black stone 156.0 $311.9
FMMR 125.1 $250.2
capital research 97.6 $195.2
Source: S&P Global Market Intelligence, IBD



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