Mark Zuckerberg Set To Pocket $700M Annually As Meta Declares First-Ever Dividend

Meta Platforms Inc (NASDAQ:META) announces inaugural dividend, potentially yielding CEO Mark Zuckerberg an estimated annual payout of $700 million.

What Happened: Meta has communicated its decision to reward investors with a quarterly cash dividend of 50 cents per share for Class A and B common stock, commencing in March, Bloomberg reported on Thursday. With a stake of about 350 million shares, Zuckerberg is estimated to receive close to $175 million each quarter before taxes.

The dividend announcement signifies Meta’s outlook on growth, as tech firms on a rapid growth trajectory often skip dividends, preferring to reinvest profits into new product development or high-priced acquisitions. However, Meta’s acquisition opportunities are dwindling due to regulatory pushback, even as it continues to invest substantially in artificial intelligence (AI).

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Following a staff cut of nearly 21,000 and a shift in focus, Meta saw its stock value almost triple in 2023. The introduction of the dividend, coupled with an extra $50 billion in share buybacks, might secure more investor patience for Zuckerberg’s long-term bets on AI and the metaverse.

Why It Matters: The news of Zuckerberg’s substantial annual earnings from Meta’s inaugural dividend comes on the heels of his significant wealth increase in 2023. Zuckerberg added a whopping $84 billion to his net worth in 2023, taking his total wealth to $139.1 billion.

Moreover, Meta’s journey to its debut dividend payout has been marked by remarkable resilience. Despite a massive 77% drop between September 2021 and November 2022, the social media giant bounced back and even soared to new heights. Meta’s stock had to climb an incredible 346% to reach its current record highs, crossing a market cap of $1 trillion.

Meanwhile, Meta Platforms on Thursday reported fourth-quarter revenue of $40.11 billion, which was up 25% year-over-year. The revenue total beat a Street consensus estimate of $39.17 billion. According to data from Benzinga Pro, Meta's stock surged by 15.22% in after-hours trading on Thursday.

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Mark Zuckerberg Meta CEO. Image made via photos on Shutterstock