Passive income can be a great way to earn some extra money that can complement a person’s main source of income. Investors do this by putting their money in stocks. With a similar wise decision, Steve Ballmer is all set to generate a whopping $1 billion of wealth with dividends.
Also Read: Vedanta shares jump after announcement of ₹11 per share interim dividend
The former CEO of Microsoft owns an estimated 333.2 million shares in the company. Now, he is due to collect dividends of his shares in the tech giant in 2024. His massive earnings from Microsoft stock dividends are the result of the tech company’s decision to boost its quarterly dividend payout to 75 cents a share, or $3 a share annually.
Also Read: Ola Electric IPO: A policy that dividend stock investors may like to know
Till 2014, the sixth richest man in the world, Ballmer owned around 4% stake in the company, ie 333.2 million shares, reported CNN citing his ownership disclosure filed in 2014. Based on the information, Ballmer is expected to receive around $1 billion in the financial year 2023-24.
Also Read: Vedanta approves interim dividend of ₹11 per share; know record date
Microsoft has been paying dividends to its investors since 2003 and the amount has only increased. His earnings with dividends are also likely to attract hefty amounts of tax from the US government. In 2018, he had reported to the Internal Revenue Service that he had an income of $656 million, reported CNN referring to ProPublica. According to the news website, “he’ll pay close to $200 million in taxes on the Microsoft dividends he collects,” as he will be subjected to the 20% tax on dividends for people earning an income of $500,000 a year or more.
Also Read: New Year Stock Picks: Religare Broking lists Asian Paints, Eicher Motors among 5 top picks for 2024
Apart from Ballmer, Berkshire Hathaway will make $6 billion in dividends for the financial year, reported CNN referring to a Wall Street Journal analysis. The Oracle of Omaha’s company has invested majorly in companies like Chevron, Bank of America, Apple, Coca-Cola, Kraft Heinz, and American Express that often provide dividends to its investors.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates & Live Business News.
Published: 28 Dec 2023, 07:43 PM IST