Last March, Apple began its dividend and share-repurchasing program. The company plans to dish out more than $45 billion over a three-year process through the hybrid approach it settled on last year. Each quarter, Apple pays shareholders a $2.65 per-share dividend. Coincidentally, today is payday for the current quarter. Happy Valentine’s Day, love Apple.
The buyback and dividend plan means that each quarter, Apple distributes approximately $2.5 billion to shareholders. Even though the plan was to reduce the company’s enormous cash pile, Apple is bringing in more than $2.5 billion each quarter. Apparently, the cash pile is growing instead of shrinking.
Apple pays new quarterly dividends approximately a month and a half after the end of each subsequent quarter. The company’s restricted shares investors are also receiving a dividend equivalent. Apple CEO Tim Cook has declined to collect on his 1.125 million shares of restricted stock, which would be worth $75 million.
Although Apple’s dividend payment program is low compared to its future cash position, it is still one of the highest dividend payers in the U.S.
Greenlight Capital hedge fund manager David Einhorn recently made the news when he announced that he filed a lawsuit against Apple for not paying out more of the cash horde to its investors. In a press release, Apple acknowledged that it is generating more money than it knows what to do with and is looking for ways to returning money to investors.
“We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone.”
Maybe next Valentine’s Day, Apple will be giving an even bigger gift to shareholders.
[Via: Apple Insider]