Apple Making $2.5 Billion Dividend Payment to Shareholders Today
Last August, Apple released $2.5 billion to shareholders in the company's first quarterly dividend payment in almost two decades. Five months previously, Tim Cook formally unveiled the dividend program, which is all part of a massive share buyback and dividend plan that will claim $45 billion from Apple's capital reserves over the next three years.
The dividend payouts continue today as Apple pays shareholders another $2.5 billion at $2.65 per share (spanning 939 million outstanding shares of AAPL).
Incredibly, although Apple has already been paying out dividends for three consecutive quarters, the program hasn't made a dent in the company's massive stockpiles of cash. The simple math of it shows that Apple is still raking in cash faster than it can possibly dish out.
According to Piper Jaffray analyst Gene Munster, Apple may announce an increase to the dividend program when Apple reports earnings for the March quarter.
“We have 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..." Tim Cook said last March. "Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”