Related topics: apple ยท shareholder

Apple prepares for first debt issue

Apple moved Monday toward its first-ever debt issue, filing documents describing plans for bond sales which would be used to pay dividends in an effort to stem its stock slide.

Apple to pay dividend, start stock buybacks

Thirty-six years after its founding, Apple Inc. is finally loosening up its purse strings to reward shareholders directly, by instituting a dividend and share buyback program.

Apple CEO hints company will part with some cash

(AP) -- Apple CEO Tim Cook believes the world's most valuable company has more money than it needs. His next challenge is to figure out whether Apple should break from the cash-hoarding ways of his predecessor, the late ...

Carl Icahn ends takeover battle for PC maker Dell (Update)

Billionaire investor Carl Icahn is giving up his bitter takeover fight for Dell Inc. a few days before shareholders are scheduled to consider the latest buyout offer from the struggling computer maker's founder Michael Dell.

German software giant SAP raises dividend

German software giant SAP said on Friday it would pay a substantially increased dividend to shareholders for 2011, its 40th anniversary year, which was its best-ever in terms of profits.

National Semiconductor to cut 1,725 jobs

(AP) -- Faced with a steep decline in sales, chip maker National Semiconductor Corp. said Wednesday it will eliminate more than one-quarter of its work force, or 1,725 jobs.

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Dividend

Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be distributed to shareholders. There are two ways to distribute cash to shareholders: share repurchases or dividends. Many corporations retain a portion of their earnings and pay the remainder as a dividend.

For a joint stock company, a dividend is allocated as a fixed amount per share. Therefore, a shareholder receives a dividend in proportion to their shareholding. For the joint stock company, paying dividends is not an expense; rather, it is the division of after tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholder equity section in the company's balance sheet - the same as its issued share capital. Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from the fixed schedule dividends.

Cooperatives, on the other hand, allocate dividends according to members' activity, so their dividends are often considered to be a pre-tax expense.

Dividends are usually paid in the form of cash, store credits (common among retail consumers' cooperatives) and shares in the company (either newly created shares or existing shares bought in the market.) Further, many public companies offer dividend reinvestment plans, which automatically use the cash dividend to purchase additional shares for the shareholder.

The word "dividend" comes from the Latin word "dividendum" meaning "thing to be divided".

This text uses material from Wikipedia, licensed under CC BY-SA