Meta Platforms Stock Shares $183 Bil Success With Investors

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In the last decade, Meta Platforms (META) stock has returned an impressive $183 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.

As it turns out, META stock has returned the 6th highest amount to shareholders in history.

  META S&P Median
Dividends $9.1 Bil $4.5 Bil
Share Repurchase $174 Bil $5.6 Bil
Total Returned $183 Bil $9.4 Bil
Total Returned as % of Current Market Cap 11.0% 24.6%

Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.

Top 10 Stocks By Total Shareholder Return

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  5. Buy or Sell Meta Platforms Stock?
  6. What To Expect From Meta Platforms Stock?

  Total Money Returned As % Of Current Market Cap via Dividends via Share Repurchases
AAPL $847 Bil 22.9% $141 Bil $706 Bil
MSFT $368 Bil 11.0% $169 Bil $200 Bil
GOOGL $357 Bil 8.9% $15 Bil $342 Bil
XOM $218 Bil 38.0% $146 Bil $72 Bil
WFC $212 Bil 75.5% $58 Bil $153 Bil
META $183 Bil 11.2% $9.1 Bil $174 Bil
JPM $181 Bil 21.6% $0.0 $181 Bil
JNJ $159 Bil 30.2% $105 Bil $54 Bil
ORCL $158 Bil 31.0% $35 Bil $123 Bil
CVX $157 Bil 48.5% $99 Bil $58 Bil

For full ranking, visit Buybacks & Dividends Ranking

What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.

That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for META. (see Buy or Sell Meta Platforms Stock for more details)

Meta Platforms Fundamentals

  • Revenue Growth: 21.3% LTM and 17.3% last 3-year average.
  • Cash Generation: Nearly 23.7% free cash flow margin and 43.2% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for META was 7.5%.
  • Valuation: Meta Platforms stock trades at a P/E multiple of 28.3

  META S&P Median
Sector Communication Services
Industry Interactive Media & Services
PE Ratio 28.3 24.4

   
LTM* Revenue Growth 21.3% 6.4%
3Y Average Annual Revenue Growth 17.3% 5.7%
Min Annual Revenue Growth Last 3Y 7.5% 0.2%

   
LTM* Operating Margin 43.2% 18.8%
3Y Average Operating Margin 37.4% 18.4%
LTM* Free Cash Flow Margin 23.7% 13.5%

*LTM: Last Twelve Months

The table gives good overview of what you get from META stock, but what about the risk?

META Historical Risk

Meta’s not immune to big drops. It fell about 43% in the 2018 correction, 35% during the Covid plunge, and took a hit of over 76% in the inflation shock. Even with strong fundamentals, when the market turns, Meta can dive hard. Solid companies don’t mean zero risk.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read META Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.