Dividend Duel: Microsoft’s Steady Payouts vs. Meta’s Nascent Yield
Microsoft (MSFT) and Meta Platforms (META) present contrasting dividend profiles in the tech sector. Microsoft boasts a 20-year streak of annual increases, with its $0.83 quarterly payout consuming just 24% of earnings. The 0.6% yield reflects conservative distribution from a cash-generating machine—Q3 free cash flow reached $21 billion amid Azure's 31% revenue growth.
Meta's 0.3% yield, initiated in February 2024, marks a strategic shift as Reality Labs losses narrow. The social media giant allocated $1.25 billion to dividends last quarter—a mere 8% of its $12.5 billion net income. Both companies prioritize buybacks, with Meta authorizing $40 billion in repurchases versus Microsoft's $20 billion program.