Apple Inc has decided to give out a dividend to its share holders from its $145 billion cash pile, in deference to investor demands. Ironically, it has posted its first profit decline this quarter in more than a decade.
Its shareholders will get an annual dividend of $12.20 a share, making Apple one of the highest dividend-paying companies. With about 94 crore shares, Apple will return $11.5 billion to shareholders over 12 months. The new plan includes issuing a first-ever $ 100 billion debt for share buybacks and higher dividends until 2015. It makes Apple the largest dividend-paying company in the world.
Apple's once stratospheric growth has tempered a bit but its position remains strong. Apple relies heavily on new launches to power its revenue growth. It has recently refreshed its offerings by launching the iPad mini and an updated iPad.
Apple has forecast revenues of $33.5 billion - $35.5 billion this quarter, lagging Wall Street's average projection of $38.2 billion. Worries over its slowing growth and narrowing margins have made its shares among the worst performers this year. After hitting a record close of $702.10 in September, the stock has lost 44 %, eroding more than $280 billion of market value, which is more than the market capitalization of Google Inc.