While Apple (AAPL) was maligned by investors for years as it sat on a massive war chest, the tables have decidedly turned and now this tech giant is becoming quite generous with its cash hoard.
Consider that company now pays $3.05 per share every quarter, good for a 2.3% dividend yield at current valuations. That adds up to nearly $11 billion in dividends paid annually to shareholders.
Of course, that’s still only about a quarter of fiscal 2014 earnings, so there’s more upside to come. And given the fact that Apple only recently instituted its dividend in 2012 and that it has already bumped its dividend 15% since then, there’s a very good chance for future dividend growth.
Beyond the dividends, Apple also is in the middle of a $100 billion stock buyback plan that will run through 2015, an increase of $55 billion over its initial stock buyback plan that was started in 2012 as the first dividends were dished out.
Carl Icahn has made a lot of noise about getting Apple to unlock further value for shareholders with another massive buyback scheme … but regardless, it’s undeniable that AAPL has earmarked a boatload of capital for shareholders that will provide great income and reduce Apple’s share count (and subsequently boost earnings) going forward.