Meta's decision to pay a dividend indicates the company's confidence in its growth potential. Despite facing regulatory opposition and narrowing its priorities, the company's stock almost tripled in 2023. The new dividend and an additional $50 billion in share buybacks may encourage investors to be more patient with Zuckerberg's long-term investments in artificial intelligence and the metaverse.
Key takeaways:
- Mark Zuckerberg's net worth surged by $28.1 billion after Meta Platforms Inc.'s quarterly results exceeded Wall Street's expectations, making him worth $170.5 billion and moving him to the fourth spot on the Bloomberg Billionaires Index.
- Zuckerberg stands to receive a payout of about $700 million a year from Meta's first-ever dividend for investors, with a quarterly cash dividend of 50 cents a share for Class A and B common stock beginning in March.
- Meta's decision to pay a dividend signals the company's view of its growth potential, despite spending big on artificial intelligence initiatives and facing dwindling acquisition prospects due to regulatory opposition.
- The company's new dividend and an additional $50 billion in share buybacks may win more patience from investors with Zuckerberg’s long-term bets on artificial intelligence and the metaverse.