Technology juggernaut Meta said on Thursday it would pay investors a dividend of 50 cents a share on March 2024.
The company’s cash and equivalents have bloated to $65.4 billion at the end of 2023, from $40.7 billion in 2022.
It should also be noted that Meta also announced a $50 billion share buyback.
When news of the dividend broke and the fact that Meta’s profits tripled in the fourth quarter Meta shares surged by 17% in US.
Meta share price was trading at around $394.78 (R7,343) per share on Friday at 2.30pm.
The CEO of the deVere Group, Nigel Green, said in statement that the move by Meta showed that their Artificial Intelligence foray was not financial mistake.
“Meta’s first-ever dividend allays investor fears that the metaverse and AI plans were going to be an abyss for money. This move is a testament to Meta’s commitment to shareholder value and marks a significant shift in perception, not only for the company itself, but also for the broader metaverse and AI sectors,“ Green noted.
Green also noted that this move was going to add more positivity and stability to the broader AI industry.
“The company’s commitment to delivering shareholder value while advancing AI capabilities sets a positive inflection point for the broader AI industry. Investors, who may have been cautious about the potential financial burdens associated with AI research and development, now see Meta’s strategic financial initiatives as a validation of the sector’s potential for profitability,” he added.
ZUCKERBERG’S BIG PAYDAY
Meta’s founder and CEO, Mark Zuckerberg will receive a $700 million (R13 billion) from Meta dividends.
According to the Guardian, Zuckerberg has around 350 million shares, and if Meta makes around the same level of dividend payouts each quarter, he could take home about $700 million over the course of the first year.
It should be noted that he took home $27 million in total compensation in 2022.
In 2024 Forbes estimated his net-worth to be around $139 billion.