Investors often overlook technology stocks when seeking dividend income, as these companies typically prioritize growth over rewarding shareholders. However, some tech companies still offer dividends to their shareholders, providing a unique combination of high growth potential and passive income. One such company is Meta Platforms (NASDAQ: META), which recently announced its first-ever dividend.
For investors looking to receive $1,000 in annual dividend income from Meta, they would need to invest in 500 shares at the current stock price of $519. This would require an investment of $259,500, but even a smaller investment in Meta can still benefit a portfolio. By diversifying with other dividend-paying stocks, even a modest dividend from Meta can contribute to overall income.
While Meta’s dividend yield is relatively low at around 0.2%, compared to the S&P 500’s average yield of 1.4%, the company’s growth potential makes it an attractive investment option. Investors may also consider reinvesting Meta dividends to increase their position in the stock, potentially benefiting from future share price appreciation.
Meta’s strong presence in social media and investments in artificial intelligence (AI) position it well for long-term growth, which could lead to increased dividend payments over time. Overall, Meta presents an appealing opportunity for investors seeking both growth and passive income.
Before investing in Meta Platforms, investors should consider other potential opportunities. The Motley Fool Stock Advisor team has identified 10 stocks with significant growth potential, excluding Meta Platforms. Past recommendations from the Stock Advisor service have yielded substantial returns, making it a valuable resource for investors.
In conclusion, while Meta Platforms may not be the top choice for all investors, its growth prospects and dividend offering make it a compelling option for those seeking a balance of growth and passive income in their portfolio.