Apple to pay out dividends worth $2.5 billion on Thursday

“Flush with billions in cash it simply can’t spend fast enough, Apple has begun the process of issuing its first quarterly dividend to shareholders in 17 years,” Daniel Eran Dilger reports for AppleInsider.

“Apple announced its plans for a new dividend program in March, alongside a $10 billion share buyback program. Each quarter, the company stated it will pay its shareholders a $2.65 per share dividend,” Dilger reports. “Shareholders of record as of Monday August 13 will be paid dividends on Thursday, the company has announced.”

Dilger reports, “Over the next three years, Apple has stated that its buyback and dividend plans will distribute $45 billion from its cash pile. Across the company’s 935 million outstanding shares, the quarterly dividend will amount to nearly $2.5 billion in payments to investors each quarter. ”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

Related articles:
Apple’s dividend will drive shares higher this quarter and beyond; expect higher dividend payouts over time – July 24, 2012
Apple could be the greatest dividend growth stock of all time – May 29, 2012
U.S. Apple investors, beware looming expiration of Bush era tax cuts – March 22, 2012
Valuentum: Expect double-digit dividend growth from Apple for some time to come – March 20, 2012
Apple announces plans to initiate dividend and share repurchase program; expects to spend $45 billion over three years – March 19, 2012

30 Comments

  1. They should have started much lover and then increased it by a large amount every quarter. Would have pleased investors more. They like when it increases. In my opinion Apple has payed more than enough of dividend through its share price.

    1. I anticipate that this was taken into account and that Apple judges they might be able to spring another 1.1 billion on top of this next year. Thereby increasing dividends at a double digit rate to accompany their growth. It is a way overcome the inevitable slowdown it growth rate as they get even bigger.

  2. Under current law, taxpayers in the 10% and 15% tax brackets don’t pay any taxes on long-term capital gains and qualified dividends, while those in the 25% to 35% tax brackets will pay a 15% tax on long-term capital gains and qualified dividends.

    Next year, that is scheduled to change, making the question about Apple and its dividend less academic. Yes, the so-called Bush tax cuts are scheduled to expire.

    In 2013, the maximum tax rate will rise to 21.2% on long-term capital gains and 40.8% for short-term capital gains.

    In addition, beginning in 2013, the new federal health-care program imposes a 3.8% tax on the investment income, including capital gains, of high-income taxpayers. ‘These two changes would result in a combined 66 2/3% increase in the maximum federal income tax in the long-term capital gains rates on the sale of stock in 2013 compared to a sale in 2012 (a 25% rate compared to a 15% rate).

    What’s more, starting in 2013, the distinction between ordinary and qualified dividends will disappear, and all dividends will be subject to the ordinary tax rates, which are scheduled to change in 2013 as well. Absent any legislation, the 10% rate will be collapsed into the 15% rate for 2013; the 25% rate will become 28%; the 28% rate will become 31%; the 33% rate will become 36%; and the 35% rate will become 39.6%.

    But, don’t worry, U.S. President Romney knows what drives the economy and creates jobs. He won’t raise taxes on a country mired in years of Obama malaise. And he won’t foist the economy-debilitating Obamacare on the country, either.

    It’s time for some common sense. Less government, not more. Less spending, not out-of-control waste.

    I’ll be voting Romney-Ryan this November. Eagerly.

      1. SHhhhhh… Their tiny heads will explode if confronted with actual facts that don’t fit their narrative. Nuance and critical thinking are not part of the program.

        1. My head certainly didn’t explode. I’d love to see some facts, but that’s merely a graph without any context or explanation, whatsoever. It’s hard to trust it without more information.

      2. Meaningless without an accompanying size of the budget deficit in real, and adjusted dollars as well as based on % of the GDP.

        Would also be helpful to see what that money was spent on.

    1. I hope Romney wins, too. Sure, he’ll do all the same things that Obama would have done in a second term, but his rhetoric will differ and he’ll have an ‘R’ next to his name instead of a ‘D’. And that makes a world of difference.

    2. Three points:

      You don’t know what Obama will do with taxes; you hyperbolic fear merchants were singing the same song in 2008 and you were wrong.

      Obamacare is Romneycare.

      The only jobs Romney created are in Shenzhen.

      1. Don’t forget Obama is gonna take all your guns too, this time for sure! LOL.

        And I’m certain that Romney created jobs at his accounting firm. It takes a lot of man-power to avoid paying taxes for so long.

    1. And you don’t get it at all.

      The $ 2.xx. is as a “per individual share”,

      Now most Investors don’t own just (1) peice of Stock as your assumption is.

      Investor’s own Hundreds of individual Stock options as Apple, and that can add up very quickly.

      Most Stock Owners also turn around and reinvest into purchasing more of the same Stock with a payout like this, ” it’s free Stock ” Most dont go out and buy dinner or purchase a can of “Far Ferched Cat food.”

      And to be very clear, it’s obvious that you have no idea what Apple just did, you need to educate yourself in the mastery of understanding what you post about, maybe you will learn something in the process, you really need to understand what a significant offering Apple has given its investors.

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