by paying a dividend to their shareholders they keep those investors happy , this is money they don't need to run the business . it is pure profit that would otherwise sit unused in a bank pissing off their investors who would expect to get a portion of those profits since they own part of apple when they buy the stock in the company
they probably pay less than 20% of their profit out this way , it not only keeps shareholders happy but can add to the stocks value since it builds confidence in investors and make even higher profits the next quarter
Another aspect about paying dividends is that is shows the company is stable. It helps them to manage their company in a way that provides a steady dividend to shareholders. A company may pay random or occasional dividends but many will pay a dividend at regular calendar intervals.
This is because shareholders need something out of purchasing a share in the business thus dividends are paid to them. Dividends aren't part of the profit since paying shareholders is a cost.
Why not read a basic book about investing/stocks and shares and then ask some sensible questions?
Shareholders own the company (like Apple).
Company makes a profit (shareholders own the profit)
Company keeps some of the profit for reinvestment/expansion etc.
Company pays rest to shareholders as dividend.
If the company retained all of the profit the shareholders would still 'own' it.
Dividends are one of the reasons to own stock in a company.
When a company has "retained earnings", they have to decide what to do with that money. The company will either re-invest in the company (build a new plant, buy a company to enter a new business line or to eliminate a competitor, open new offices, increase the advertising budget etc)
or
the company could return that money to the "owners" (stockholders) in the form of dividends (with regular dividends or special one time dividend)
Investors want paying. Why not pay that 3 billion to the people who are literally starving to death, instead of propping up a new Porsche or similar.
Its the shareholders money.
I read that Apple paid three billion in dividends. I know they already make a lot every quarter, but why not save some extra billions?
