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Why This "Magnificent Seven" Stock Is 1 of My Top Dividend Stock Ideas for 2026 and Beyond

The Motley Fool • Dec 29, 2025 10:31pm (New York) •By Daniel Sparks

Meta Platforms is highlighted as a top dividend stock idea for 2026 and beyond despite its current low 0.3% dividend yield. The company has significant room for dividend growth given its low payout ratio, strong business fundamentals with 26% YoY revenue growth, and substantial free cash flow of $10.6 billion in Q3. However, Meta plans aggressive capital expenditures of $70-72 billion in 2025 for AI infrastructure, which may limit near-term dividend increases. The stock trades at a P/E ratio of 29, making continued rapid growth essential to justify valuations.

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Insights

META positive

Meta demonstrates strong fundamentals with accelerating revenue growth (26% YoY), substantial free cash flow ($10.6B in Q3), and significant dividend growth potential given its low payout ratio. The company returns meaningful capital through both dividends and share repurchases ($3.2B in Q3). While aggressive AI spending may temporarily limit dividend increases, the underlying business strength and growth trajectory support a positive outlook for long-term dividend investors.

Keywords

#dividend growth #Meta Platforms #Magnificent Seven #AI infrastructure investment #share repurchases #free cash flow #capital expenditures

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