Meta Platforms Inc (NASDAQ:META) announces inaugural dividend, potentially yielding CEO Mark Zuckerberg an estimated annual payout of $700 million.
What Happened: Meta has communicated its decision to reward investors with a quarterly cash dividend of 50 cents per share for Class A and B common stock, commencing in March, Bloomberg reported on Thursday. With a stake of about 350 million shares, Zuckerberg is estimated to receive close to $175 million each quarter before taxes.
The dividend announcement signifies Meta’s outlook on growth, as tech firms on a rapid growth trajectory often skip dividends, preferring to reinvest profits into new product development or high-priced acquisitions. However, Meta’s acquisition opportunities are dwindling due to regulatory pushback, even as it continues to invest substantially in artificial intelligence (AI).