From Nasdaq:

Meta Platforms, Inc. announced their initiation of quarterly dividends, with the first dividend of 50 cents per share to be paid on March 26. This decision led to a 15% surge in Meta shares after hours on Thursday.

Gary Black noted that Meta’s $43B in FY’23 FCF and $65B cash position convinced the $META Board to initiate a $2/share dividend and add $50B to the buyback.

In addition to the dividend, Meta revealed a new repurchase authorization of $50B in shares, supplementing the $30.93B pending from a prior authorization.

Meta now joins the ranks of “Magnificent 7” counterparts, such as Apple, Inc., Nvidia Corp., and Microsoft Corp., in adopting a dividend policy.

Tesla, Amazon, and Alphabet may opt to reinvest profits over dividend payments due to their respective business models and capital-intensive nature.

Despite Musk’s legal battle, he may lean towards convincing investors of the potential for stock price appreciation rather than prioritizing dividend payouts.

The Invesco QQQ Trust ended Thursday’s session up 1.18% at $421.88.



Read more: Meta Breaks The Mold: Time For Tesla, Amazon And Alphabet To Join The ‘Magnificent Seven’ Dividend Party?