From Nasdaq:

1. Meta Platforms (NASDAQ: META) announced its first-ever dividend, with a payout of $0.50 per share and an expected annualized yield of 0.5%. This dividend will likely increase over time as Meta allocates $50 billion for share buybacks, but investors remain unsure about the stock’s valuation and growth potential.

2. International Business Machines (NYSE: IBM) presents a more enticing offer for dividend investors. The company has a well-established dividend history, with a yield of 3.6% based on the latest quarterly payment of $1.66 per share. IBM also offers a more stable and less speculative business model compared to Meta.

3. IBM’s financial performance includes $11.2 billion in free cash flow in 2023, with expected growth to $12 billion in 2024. Even with slower revenue growth compared to Meta, IBM’s steady and less risky business model makes it a preferred option for investors seeking dividends and stability.

4. While Meta’s Q4 earnings showed strong growth, the company’s long-term prospects remain uncertain due to increased regulatory scrutiny and substantial investments in the metaverse and AI technology. Shareholders are wary of the balance between dividends and share buybacks, leading to concerns about the overall investment potential in Meta.



Read more: Meta Is Now a Dividend Stock, but This Tech Giant Is a Better Buy