We are committed to providing fast, efficient, and affordable software solutions that set new standards in the software development industry.
  • Apple is Giving Cash Back to Investors
Technology Articles > Computers > Apple > Apple is Giving Cash Back to Investors

Apple has a problem. The company is simply too rich. With more than $100 billion, Apple didn’t know what to do with all this extra cash until the board decided to give some of it away to investors in the form of dividends. How much is Apple giving away? Approximately $45 billion in dividends will be given to investors starting in July – that breaks down to about $2.65 per share. Needless to say, investors are more than happy with this decision that seems all investor-based, but Apple benefits from giving away a hefty hunk of change too.

When a company decides to give dividends, not only does this decision please investors who have stuck by a company, but it also entices new investors to buy stock. After all, who wouldn’t want to be part of a company that gives people money when times are good? Apple is also showing investors that the company cares about those who make it such a big and powerful tech giant, and this is a rare thing to see from a massive company – or is it? When all is said and done, there’s a truth behind the Apple dividend giveaway that might escape the view of some onlookers.

Where’s Apple’s Cash At?

As with most massive companies, Apple doesn’t hold all of its cash in the United States. Why? Simply put the U.S. is notorious for taxing large amounts of money to no end whereas, say, Switzerland isn’t. Were Apple to bring any amount of that $100 billion back onto U.S. soil, the funds that were transferred would be heavily taxed and this would amount to lost money for Apple. So, as you can see, Apple’s board of directors didn’t have much choice when decided what to do with the extra funds. Since investors always love to see money returned (which is, after all, why it’s called an “investment”), Apple’s board made a smart decision.

So should you buy some Apple stock in order to gain some of those dividends that will be given out in July? Investing in a company like Apple takes a lot of coin. Right now, Apple shares are at $600 per share. In order to make any kind of decent money back, you’d have to purchase hundreds, if not thousands, of shares. On the other hand, if you just want to show your support for Apple and have some claim to a very small portion of the company, you can purchase a few shares and try your luck.

One More Bit of Apple Investment News

In addition to doling out dividends, Apple will also be buying back billions (around 10 billion) of the company’s shares. Buying back its own shares ensure that employee stock will be plentiful while also keeping purchase programs in mind. All of this investment news from Apple has the marketplace spinning and Apple supporters all across the globe are talking about Apple’s dividend plans as well.

With the launch of the new iPad and sales projections through the roof, it doesn’t look as though Apple will lose its place on the tech throne anytime soon.