Apple to pay $2.65 a share or $2.5 billion in dividend payouts on Thursday

Apple to pay $2.65 a share or $2.5 billion in dividend payouts on Thursday
Poor Apple. Reminiscent of Richie Rich, the comic strip zillionaire who could never spend more money than his daily allowance, the Cupertino based company continues to rake in more money than it is spending. Apple has tried hard to reduce its cash hoard, and plans on spending $45 billion over the next three years on dividends and stock buybacks. Apple announced the dividend program in March at the same time it unveiled a $10 billion share buyback plan. Shareholders of record on February 11th will get Thursday's payout.

Apple CEO Tim Cook said that money in the company's piggybank has been put to good use with spending on R&D, acquisitions, new store openings and investments in the supply chain and infrastructure. And Apple will still have money for strategic opportunities. The fourth quarter brought $16 billion in cash resulting in a bank account stuffed with $137.1 billion.

Apple's dividend yield is 2.2% at current prices, and while in terms of yield there are many more higher paying stocks on the market, in terms of raw dollars, Apple is one of the highest dividend payers in the U.S. Most tech stocks, as a rule, would rather shovel cash flow back into the company, but Apple is a special case because of its large cash position. For example, rivals Google and Samsung refrain from making any dividend payouts.

source: AppleInsider



1. wendygarett unregistered

The cash from 9billion to 13billion has indicate that Apple lack of r&d spending... No wonder the stock price tumble even if you pay extra dividend :)

2. wendygarett unregistered

I study at the business section and I must say, stock buyback is the worst decision in order to increase price... A lot of history prove that... Rather pay as dividend instead of buyback, trust me :p

3. rusticguy

Posts: 2828; Member since: Aug 11, 2012

R&D? Really? Buyback if they aren't doing at current levels it means it will slide further when algebra maths and geometry fails ... all too desperate to reverse the trend of share prices being hosed :)

4. anywherehome

Posts: 971; Member since: Dec 13, 2011

Apple is just kidding :) Apple should give more from his stolen loot from eBooks price fixing and IT price fixing in Australia...

5. jsdechavez

Posts: 814; Member since: Jul 20, 2012

I wonder where those R&D spending went.. The 5th row of icons? Or the forthcoming 6th row and 5th column?

6. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Patents based on sketches and drawings. That's big R&D expense and that's why they weren't left with any money for even prototype.

7. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

So what's the deal PA? No mention of the shareholder(s) suing over this deal, and Tim Cook calling it silly? I've read it tons of places but no mention of it here. Basically there is some vote going down today and this is a part of it, which the suit wants to separate out. Everyone says that Apple is only accountable to their investors, but in this case it sounds like they're trying to force their hand.

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