Tech Giants Meta and Cisco Raise Dividends in Q1 2025
As earnings season unfolds in 2025, companies like Meta Platforms and Cisco Systems are rewarding shareholders with increased dividends. Although tech companies are not traditionally known for dividends, both firms have announced attractive payouts for investors.
1. Meta Platforms’ Historic Dividend Increase
This month, Meta Platforms (NASDAQ: META) increased its quarterly dividend by 5%, bringing it to just under $0.53 per share. This marks a significant milestone as it’s the first time the company has raised its dividend since starting payouts in early 2024.
Leading the social media industry, Meta enjoys unmatched popularity among advertisers. Companies continue to leverage the platform for targeted advertising aimed at reaching potential buyers.
In its latest earnings report, Meta demonstrated impressive growth, with revenue increasing by 21% year over year to over $48 billion and net income soaring 49% to nearly $21 billion. Both figures surpassed analysts’ expectations.
However, the only downside was Meta’s revenue guidance for the upcoming quarter. Management predicts earnings between $39.5 billion and $41.8 billion, with the midpoint of $40.65 billion falling short of the analyst average of $41.64 billion. Still, a 2% miss on projected revenue is unlikely to deter sensible investors from holding onto Meta shares.
Analysts continue to predict modest growth for Meta, expecting less than 15% revenue growth and a 5% increase in net income per share compared to 2024. Nonetheless, many believe Meta may outperform these projections, making it a potential buy.
The new dividend will take effect on March 26 for shareholders of record as of March 14, resulting in a yield of approximately 0.3% based on the current stock price.
2. Cisco’s Steady Dividend Growth
In contrast, investors in Cisco Systems (NASDAQ: CSCO) can enjoy a higher dividend yield. Although Cisco is a well-established company, it occasionally faces declines in key growth areas.
Since initiating its dividend in 2011, Cisco has consistently raised its quarterly payout, which has grown significantly from $0.06 per share to $0.41 after a recent boost of nearly 3%.
While Cisco may not have the same flash as Meta, it is well-positioned to capitalize on the increasing demand for artificial intelligence (AI) technologies. CEO Chuck Robbins emphasized the company’s readiness to assist customers in scaling network infrastructure and enhancing AI security.
Despite a recent 9% revenue increase in its second quarter of fiscal 2025—largely due to the acquisition of data analytics company Splunk—Cisco reported a 1% revenue decline when excluding Splunk’s contributions.
Overall, Cisco is a reliable player with solid profit margins, generally around 20%, and healthy free cash flow. It’s one of the few income-generating stocks in an industry typically low on dividend payers.
Cisco’s increased dividend will be paid on April 23 to shareholders of record by April 3, yielding 2.5% based on current share prices.
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The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
