Company Analysis : Apple Inc. Essay

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• Dividends Companies pay dividends to shareholders, which is a distribution of the company’s earnings. They can be issued as cash payments, shares of stock, and other property. A company’s board of directors pay on dividends at their discretion (Ross 248). In 2013 Apple paid a total of $10.5 billion in dividends, and $11 billion in dividends in 2013. As of October 2014, Apple Inc. reported having 26,112 recorded shareholders. In 2014 the company acquired Beats Music, LLC and in turn issued 5.1 million shares of its common stock. The company plans on increasing dividends on an annual basis. In 2014 the company utilized $45 billion to repurchase common stock and in result paid $11.1 billion in dividends, the company also repurchased stock in 2013 and paid dividends on that common stock. Payment on dividends in 2012 was far less than the payments in 2013 and 2014, only totaling $2.49 billion. The drastic increase it payments in 2013 and 2014 was due to the repurchase of common stock and the issuance of stock after the Beats Music, LLC acquisition (Apple Inc. Form 10-K. 2014.). Much like Apple’s EPS compared to Hewlett-Packard’s EPS, Apple’s payment on dividends is more than double. Apple Inc. is expected to hike up dividends which is beneficial to the company’s stockholders because it is an implication of strength and conveys to shareholders that the company expects cash flow growth. Some forecasters are predicting dividend growth to jump anywhere

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