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  • Apple to Release $2.5 Billion in Dividends to Shareholders This Week


    For most companies, dropping $2.5 billion in a week would take down the entire operation or briskly send it into bankruptcy. But not when you're Apple.

    This week, the well-capitalized tech giant is releasing $2.5 billion to shareholders in the company's first quarterly dividend payment in almost two decades.

    As MMi reported in March, Tim Cook sounded excited to formally unveil the dividend program, which will roll out in earnest this Thursday. It's all part of a big buyback and dividend plan that will claim $45 billion from Apple's teeming capital reserves over the next 36 months.

    “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..." Cook said. "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.”

    Source: Apple
    This article was originally published in forum thread: Apple to Release $2.5 Billion in Dividends to Shareholders This Week started by Michael Essany View original post
    Comments 13 Comments
    1. bigboyz's Avatar
      bigboyz -
      I wonder how long this will last? Is this the Apple model moving forward or will it fade with greed and control? Wouldn't mind being a shareholder right now to be honest :]
    1. jwil736's Avatar
      jwil736 -
      HAHAHA isn't that the amount their suing Samsung for?
    1. Norb's Avatar
      Norb -
      Quote Originally Posted by bigboyz View Post
      I wonder how long this will last? Is this the Apple model moving forward or will it fade with greed and control? Wouldn't mind being a shareholder right now to be honest :]
      Meh it's not all it's cracked up to be... I have a little under $10k in stock and my payout will be just under $40... It's nice but I rather see the stock rise 3 points (that would give me $45).
    1. AfterMercyFM's Avatar
      AfterMercyFM -
      At 23 shares, what's the payback for that? Also, do you only get a cut if you bought in lower than it is at the time of them cutting checks? This could be my first dividend check ever, just curious.
    1. Norb's Avatar
      Norb -
      Quote Originally Posted by AfterMercyFM View Post
      At 23 shares, what's the payback for that? Also, do you only get a cut if you bought in lower than it is at the time of them cutting checks? This could be my first dividend check ever, just curious.
      It's 2.65 per share (so 60.95) and this is also my first dividend payout so that's as much as I know. =P
    1. AfterMercyFM's Avatar
      AfterMercyFM -
      Quote Originally Posted by Norb View Post
      It's 2.65 per share (so 60.95) and this is also my first dividend payout so that's as much as I know. =P
      $60 isn't bad. But what's encouraging is that this is only $2.5b out of the $45b they're projecting to pay out over, what the next 36 months or was it longer? I might have some figures wrong, I'm driving.
    1. King_O_Hill's Avatar
      King_O_Hill -
      Your forgetting that uncle Sam will want his 30%!
    1. Scotty Manley Silberhorn's Avatar
      Scotty Manley Silberhorn -
      Quote Originally Posted by Norb View Post
      Meh it's not all it's cracked up to be... I have a little under $10k in stock and my payout will be just under $40... It's nice but I rather see the stock rise 3 points (that would give me $45).
      I’m in the same boat. Have about 15K and would rather have the stock go up higher. It wouldn’t bother me if they offered a DRIP, but no DRIP means $40 sits in my investor account.
    1. Anonymous's Avatar
      Anonymous -
      Quote Originally Posted by jwil736 View Post
      HAHAHA isn't that the amount their suing Samsung for?
      I think (emphasis on think) it was more like 25.2 billion.
    1. firetwuck's Avatar
      firetwuck -
      Quote Originally Posted by King_O_Hill View Post
      Your forgetting that uncle Sam will want his 30%!
      Only if you earn over a certain dollar amount in capital gains.
    1. bencjedi's Avatar
      bencjedi -
      I bought my first two Apple stocks a week ago, so I guess I am included in this. If I bought more stocks now, would they not be part of this payout thing or does it not matter? (I should have bought more, but at $623 each I was just 'testing the waters' with my rollover IRA since I've never managed individual stocks before and my previous employers only offered mutual fund elections).
    1. jrl_1644's Avatar
      jrl_1644 -
      Quote Originally Posted by bencjedi View Post
      I bought my first two Apple stocks a week ago, so I guess I am included in this. If I bought more stocks now, would they not be part of this payout thing or does it not matter? (I should have bought more, but at $623 each I was just 'testing the waters' with my rollover IRA since I've never managed individual stocks before and my previous employers only offered mutual fund elections).
      Thats a good question, one I would like to see answered by some experienced stock experts. I think if it applies to all stockholders then surely the price of Apple stock will still rise, even if just briefly, from the people who want to get in on the dividend announcement.
    1. bigboyz's Avatar
      bigboyz -
      Guess you need to own millions in stocks to see any real pay out..good luck with that!