Morgan Stanley says these stocks could follow Meta and Alphabet in announcing a dividend

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Stock Markets,Paypal Holdings Inc,Palo Alto Networks Inc

Alphabet and Meta Platforms are among the most recent high-profile names to initiate a dividend to give back to shareholders.

The dividend stock club could soon get new members, according to Morgan Stanley. "Committing to a consistent dividend sends a positive signal to the market, conveys management's confidence in the business, and opens the stock up to income oriented investors," wrote analyst Todd Castagno, adding that a dividend "conveys a hopeful future," while also offering a steady income and luring passive and income investors.

To find some of the potential dividend-initiating candidates, Morgan Stanley looked for stocks with a market cap exceeding $35 billion, a strong net cash position and a free cash flow yield exceeding 3%. Here are some of the companies that made the list: Several popular technology and companies made the list, including PayPal and Palo Alto Networks . The stocks are up 5% and 0.3%, respectively this year. Expedia Group holds the most significant free cash flow yield of the group at 12.6%.

 

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