Markets

Facebook May Start a Dividend

Tablet displaying intraday stock performance

Facebook May Start a Dividend

(San Francisco)

While they are far from young or immature businesses, so-called FNAG stocks have all stuck to the current entrepreneurial mantra of not paying a dividend. That may be about to change as Facebook may soon be compelled to start issuing one. The company has 2 bn users and is reaching the limits of its growth potential. If headline growth starts to slow, which it almost inevitably will, expect investors to start demanding dividends and buybacks. Non FANG, but closely related stocks, such as Apple, Microsoft, and Intel, are all paying or raising dividends.

FINSUM : Dividends and buybacks would be a very positive driver for Facebook's stock price, especially if they started before growth began to wane.

  • facebook
  • dividend
  • buybacks
  • fangs
  • Growth

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Markets Videos