Apple Inc, approaching a $500 billion market capitalisation, will probably start paying a dividend this year, attempting to appease investors who have said the electronics maker is hoarding too much cash.
The company is likely to declare a quarterly dividend of about $2 a share before the year is out. The projections are based in part on the dividends paid by other large technology providers, including Microsoft Corp and International Business Machines Corp.
An Apple dividend would be a boon to investors and would probably yield benefits for the company, which has $97.6 billion in cash and investments, and can afford the $7.46 billion a year that a $2 dividend would cost. A dividend could provide a boost to Apple by attracting a new class of investors that only hold stock in dividend-paying companies. Apple also may buy back shares, another move that could lift its stock price.
