Meta (US:META) became the fourth member of the 'Magnificent Seven' to pay a dividend earlier this year, but the pickings are pretty slim. Meta's yield amounts to barely 0.4 per cent, compared with 0.7 per cent at Microsoft (US:MSFT), 0.6 per cent at Apple (US:AAPL) and almost 0 per cent at Nvidia (US:NVDA).
IC TIP:
Buy
at
246.5p
Tip style
Income
Risk rating
High
Timescale
Long Term
Bull points
- Healthy dividend yield
- Exposure to promising regions
- Broad range of holdings by sector
- Useful diversifier
Bear points
- Underwhelming short-term performance
- Risk of missing US opportunities
- Exposed to volatility elsewhere
What does this tell us about income investing? Not much on the face of it, given these companies might simply be trying to sweeten up shareholders with small payouts. However, it does illustrate a common dilemma: global investors often have to look beyond the obvious big tech names, and beyond the outperforming US market, to find higher yields.