Apple Distributes $2.5 Billion To Shareholders Through A Dividend
Apple has paid shareholders their second dividend in the last 17 years. The company distributed around $2.5 billion in $2.65 per share across the company’s 935 million outstanding shares. Apple announced a dividend plan this past March along with a $10 billion share buyback program. Each quarter, the company said that they would pay each shareholder a $2.65 per share dividend. Shareholders received the payment on November 15th.
Apple CEO Tim Cook said that the company has “used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future.”
In the next 3 years, Apple said that the buyback and dividend plans will distribute $45 billion from their cash with the quarterly dividends being at around $2.5 billion per quarter. Apple is generating cash faster than it is paying out their dividends.
For example, Apple announced that they have accumulated $7 billion in cash during this past June quarter. In their most recent earnings report, they gained another $4.2 billion. Now the company has $121.4 billion in cash as of October.
Mr. Cook declined to collect dividend payments for the 1.125 million shares of restricted stock that he has been granted, which would be worth around $75 million if he took it.
This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry