New York
CNN
—
For most individuals, passive revenue is a bit of additional pocket change that requires minimal effort to earn to complement a fundamental supply of revenue. For Steve Ballmer, it’s $1 billion.
Ballmer, the sixth richest particular person on the planet, is because of gather that a lot in dividends from Microsoft in 2024. This comes after the tech big boosted its quarterly dividend payout to 75 cents a share, or $3 a share yearly.
Since Ballmer, the previous CEO of Microsoft, owned 333.2 million shares of the corporate as of 2014 (the final time he filed an possession disclosure and seems to have adjusted his Microsoft inventory), the equal of a 4% stake, he would obtain simply shy of $1 billion in fiscal yr 2024. That’s for merely proudly owning the inventory — no matter the way it performs.
Ballmer didn’t reply to a request for remark.
That’s after all assuming Microsoft’s board of administrators doesn’t determine to slash dividends. However that doesn’t appear doubtless. Because the firm started paying dividends to shareholders in 2003, the quantity has solely elevated.
Ballmer gained’t be the one one raking it in. Uncle Sam might be getting a beneficiant lower as effectively.
Given Ballmer reported $656 million in revenue to the Inside Income Service in 2018 according to ProPublica, it’s in all probability secure to say he’ll be topic to the 20% tax on dividends for people incomes a taxable revenue of $500,000 a yr or extra. Meaning he’ll pay near $200 million in taxes on the Microsoft dividends he collects.
Ballmer isn’t the one one set to earn rather a lot from proudly owning shares that pay dividends.
Warren Buffet’s Berkshire Hathaway is because of gather $6 billion in dividends for the yr, in keeping with a Wall Street Journal analysis. That’s as a result of nearly all of shares Berkshire Hathaway invests in pay dividends. Included in that checklist is Chevron, Financial institution of America, Apple, Coca-Cola, Kraft Heinz and American Specific.