Ondrej Holzman Apple could pay higher dividends to shareholders in the future than it does now. The California-based company conceded this possibility, saying that it has so far paid out 10 of the planned $45 billion to shareholders.
With more than $100 billion in its account, Apple is one of the richest companies in history, and it continues to grow, so the accounts are filling up very quickly, even though Apple has started returning some of the capital to shareholders. It is therefore possible that Apple will increase its dividend, and the introduction of so-called preferred shares with a higher dividend is also not excluded.
Apple stated everything in its declaration:
Early last year, Apple's cash piled up to the point where it exceeded what we needed to operate our business and maintain flexibility around strategic opportunities, so we announced that we would return $45 billion to shareholders over the next three years. In the next week, we will complete $10 billion of this plan.
We are in a favorable position as we continue to generate tremendous earnings, including $23 billion in cash flow from operations in the last quarter alone.
Apple's board and board are in active discussions about returning additional cash to shareholders. During our discussions, we will give careful consideration to Greenlight Capital's proposal to issue some form of preferred stock. We welcome the views of Greenlight and the views of all our shareholders.
As part of our efforts to deepen shareholder influence, Proposal #2 makes some recommended changes to our bylaws. These changes were recommended independently of the proposal from Greenlight and do not mean that Apple cannot accede to his concept. However, contrary to Greenlight's claim, adoption of Proposal #2 would not prevent the issuance of preferred stock. Currently, Apple's bylaws allow the board of directors to issue preferred stock in the form of "blank checks" without shareholder approval. If Proposal #2 is adopted, our stockholders will have the right to approve the issuance of preferred stock. Proposal #2 has the support of many of our shareholders.
We remain open to an ongoing dialogue with our shareholders to obtain different perspectives on the return of capital.
The key part of the above statement is that Apple is willing to discuss the introduction of preferred shares. These usually carry higher dividends, although they do not affect the distribution of power in the company in any way. However, it is questionable whether any preferred shares in Apple would also have an effect on the powers of the company's management.
However, Apple's announcement does not come by accident. It is a response to the proposal of the hedge fund Greenligh Capital, which is mentioned in the report. Greenlight Capital has filed a lawsuit against the Californian company, demanding a greater return on invested capital, and Apple is proposing to issue $50 billion worth of preferred stock with an annual dividend of 4%. That should equate to roughly $145 per share.
The stock market also immediately reacted to Apple's announcement - Apple shares rose by about 3 percent to less than $470 per share.
Since when is $145 4% of about 500? :D Someone can't count.
He can feel the person in question... But you probably know about fart shares:-)) let alone preferential ones :-))) preferential shares are higher and have a higher yield :-))) but that's nothing :-)) everyone can criticize. :-)) great article by the way:-)) . I speak as their shareholder :-))
So explain it to me
as their shareholder, I also do not understand the calculation in the article. I don't criticize, but I can count.
If the dividend is higher and actually paid every year, I will buy ordinary and preferred shares.
I am interested in a higher long-term return.
I currently see no reason to only own a stock with low or no dividends ;-)