Meta Platforms Inc. has introduced its first-ever dividend, set to significantly benefit CEO Mark Zuckerberg with an estimated $700 million annually. Starting in March, Meta will distribute a quarterly cash dividend of 50 cents per share for both Class A and B common stock.
Owning approximately 350 million shares, Zuckerberg’s pre-tax quarterly income from this dividend will be around $175 million. This strategic financial move reflects Meta’s confidence in its growth trajectory, despite traditionally growth-focused tech firms often foregoing dividends to reinvest earnings.
The decision comes after Meta significantly reduced its workforce and refocused its business strategy, leading to a near tripling of its stock price in 2023. Additionally, Meta has announced an extra $50 billion in share buybacks, signalling strong future commitments to artificial intelligence and the metaverse.
