Dividend Payouts Are Latest Sign of Big Tech’s Financial Muscle
- Meta and Alphabet shares rallied after announcing new payouts
- Tech firms still spend more on buybacks than on dividends
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After years of chasing growth at all costs, tech firms are taking a page from the playbook of old-school value businesses — paying a dividend. Throwing off more cash than they can spend, the shift to a regular payout provides more evidence for the companies’ financial strength.
Various technology firms have introduced quarterly payouts this year, and while the yields are small, the news sparked huge rallies as investors took the initiations as a sign the group can continue to deliver robust cash flows.