Meta Plans Future Dividend Growth with Current Yield at Just 0.3%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Dividend Growth Potential: Meta's current quarterly dividend of $0.525 translates to an annual payout of $2.10, yielding just 0.3%, yet with a low payout ratio of 9%, there is significant room for future increases, enabling the company to invest in AI opportunities.
- Large Share Repurchases: In Q3, Meta returned approximately $1.3 billion in dividends and spent nearly $3.2 billion on share repurchases, showcasing its robust capital return strategy, especially with nearly $10 billion spent in Q2, enhancing shareholder value.
- Strong Business Growth: Meta's revenue surged 26% year-over-year in Q3 to about $51.2 billion, driven by a 14% increase in ad impressions and a 10% rise in average ad prices, providing a solid foundation for future dividend growth.
- Capital Expenditure Plans: Meta anticipates capital expenditures of $70 to $72 billion in 2025, primarily for AI computing infrastructure, which may limit rapid dividend growth in the near term but lays the groundwork for long-term development.
META
$658.69+Infinity%1D
Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 832.06 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
36 Buy
6 Hold
1 Sell
Strong Buy
Current: 663.290
Low
655.15
Averages
832.06
High
1117
Current: 663.290
Low
655.15
Averages
832.06
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
