Apple announced a US$130 billion expansion to its stock dividend program, and announced a 7-to-1 stock split on Tuesday. The news came on the heels of the iPhone and iPad maker's second fiscal quarter earnings where it reported $45.6 billion in earnings.
The company bumped up its quarterly dividend for shareholders by about 8 percent with a per share payout of $3.29. The new dividend will be paid on May 15 for shares held on May 12. Apple also said in a statement, "The Company also plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is among the largest dividend payers in the world."
So far, Apple has paid out $66 billion through its dividend program. Moving forward, company CEO Tim Cook said Apple will continue to increase dividends annually.
Along with the boost in share dividend payouts, Apple also announced a 7-to-1 stock split. Shareholders as of June 2 will be granted six additional shares, and trading on the new split-adjusted shares will start on June 9.
Apple announced a 2-for-1 stock split in 2000 that led to an increase in share values, and another in 2005. Investors will likely expect to see an increase again once the 7-to-1 split takes place in the next few weeks.
Apple closed on Wednesday at $524.75, down 6.95 (1.31%) for the day. The company's stock is trading after-hours at $568.27, up 43.52 (8.29%).