Meta Plans Significant Dividend Growth Over Coming Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: NASDAQ.COM
- Dividend Growth Potential: Meta's current quarterly dividend stands at $0.525, with an annual payout of $2.10, resulting in a mere 0.3% yield; however, with a low payout ratio of just 9%, there is significant room for substantial increases in the coming years, bolstering investor confidence.
- Capital Expenditure Plans: The company anticipates spending between $70 billion and $72 billion on capital expenditures in 2025, primarily for AI infrastructure, which will provide robust support for future growth while potentially limiting rapid dividend increases in the short term.
- Strong Business Growth: Meta's third-quarter revenue surged 26% year-over-year to approximately $51.2 billion, driven by a 14% increase in ad impressions and a 10% rise in average ad prices, showcasing the company's competitiveness in a rapidly evolving market.
- Buybacks and Shareholder Returns: In Q3, Meta returned about $1.3 billion in dividends and spent nearly $3.2 billion on share repurchases, reflecting a proactive approach to shareholder returns while also indicating its strong cash flow position.
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.
