|
By Chris BUCHBINDER, Marc NABI and Anne-Marie PETERSON, Equity Portfolio Managers, Capital Group
Meta’s dividend initiation this year appears to have chan- ged the payout paradigm for Big Tech companies. Soon after, Alphabet and Salesforce followed suit, announcing dividends for the first time.
Investors have historically balked at dividends as a sign of declining growth prospects. That was the signal that investors gave when Microsoft first announced its dividend in 2003. But Meta appears to have successfully changed that narrative. The stock went up 23% following the announcement, accruing almost $200 billion in market cap.
The distinguishing feature today is that the larger cap tech companies have buttressed balance...
|