What Is the Dividend Payout for Meta Platforms?

In March of this year, Meta Platforms (NASDAQ: META) officially became a dividend-paying stock by making its first $0.50 per share distribution. Two more quarterly payouts have occurred since then, with the most recent taking place on Sept. 26 to those who held shares as of the close of business on Sept. 14.

Meta Platforms' dividend is modest, but it marks the start of a new era for the company

Meta distributes dividends four times a year, so, at the current payout level, that amounts to $2 per share annually going to stockholders.

As of this writing, Meta's dividend yield (its annual dividend payment divided by its stock price) is about 0.35% -- which is low compared to many dividend-paying stocks. The average yield among its fellow S&P 500 stocks is about 1.3% today.

Yet what's truly important about Meta's dividend is that it exists. It shows that the company's management is dedicated to returning value to shareholders. It's also a sign that the company's fundamentals are sound and its balance sheet and cash flow can support the dividend payments.

Will Meta Platforms pay a larger dividend in the future? Almost certainly. In the second quarter, Meta generated $10.9 billion in free cash flow. That more than covered the company's next round of dividend payments, which should total around $1.27 billion.

What's more, over the last decade, Meta's free cash flow has increased by more than 800%. If that trend continues, the company will have even more cash flow available to support higher dividend payments well into the future.

Should you invest $1,000 in Meta Platforms right now?

Before you buy stock in Meta Platforms, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $867,372!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

See the 10 stocks »

*Stock Advisor returns as of October 21, 2024

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.