Apple declares quarterly cash dividend of $2.65

Apple declares quarterly cash dividend of $2.65

Apple has announced as part of its earnings release that it intends to pay its investors a quarterly cash dividend of $2.65.

Here’s the language from Apple’s formal release:

Apple’s Board of Directors has declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on November 15, 2012, to shareholders of record as of the close of business on November 12, 2012.

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On an annualized basis, that equates to a payout of $10.60. At Apple’s current share price of $609.8, the dividend yield is a paltry 1.7%. Still, the move by the firm is an admission that it can’t effectively spend all of its cash. The company has tens of billions in the bank; that it is paying some back to its investors would be highly unsurprising, if Apple was not such an unusual company.

In comparison, Microsoft’s dividend is 3.3%, or nearly double on a percentage basis than what Apple is offering. In after hours trading, Apple is up under 1%.

There is a current pressure of sorts among the largest technology companies, who have watched their bank accounts swell; purchasing small companies for talent does little to diminish rich cash positions that they have acquired over a long period. Facebook, Google, Apple and Microsoft are all over the $10 billion mark – with all but Facebook sitting on a multiple of that figure.

While smaller technology companies, such as Pandora, Zynga, and Groupon struggle, the giants are doing so well they literally cannot find a place to stash all their cash.

For more on Apple’s quarterly performance, TNW has its full coverage here.

Image Credit: Thinkstock

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