FT – Meta’s small dividend: Is the era of cash rewards making a comeback?

As the winds of change sweep through the investment landscape, Meta's modest yet significant foray into dividend payouts marks a potential shift in investor sentiment. While dividends have waned in prominence over the past decades, Meta's move signals a resurgence in appreciation for steady shareholder rewards. In an era where traditional norms are being reevaluated, the allure of consistent income streams is regaining its appeal, offering investors a sense of stability amidst market volatility. As the investment community recalibrates its strategies, the humble dividend may be poised for a renaissance, echoing echoes of a bygone era while adapting to the evolving demands of modern investors.

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By Katie Martin

Meta's move to start the payouts could signal an upcoming switch in investor mindset

Shareholders in Meta are about to start receiving a dividend for the first time. Most of them probably won't notice. Investors will receive a piddling 50 cents per share each quarter, starting next month. Given the prevailing share price of the social media monster, this equates to an annual dividend yield of just 0.42 per cent. This sounds tiny. It is tiny. But this particular form of microdosing sent out a big signal, for the company and potentially for the wider market.

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