Microsoft’s ex-CEO Steve Ballmer set to receive nearly $1 Billion in dividends in 2024.
Steve Ballmer, the former CEO of Microsoft and the sixth richest person globally, is poised to receive almost $1 billion in dividends from the tech giant in 2024. Microsoft recently raised its quarterly dividend payout to 75 cents a share, totaling $3 a share annually. As Ballmer owns approximately 4% of Microsoft, equivalent to 333.2 million shares, the increased dividend will contribute significantly to his income for fiscal year 2024. Despite the windfall, there is speculation about the possibility of Microsoft’s board reducing dividends, though historical trends indicate a consistent increase since the company initiated dividend payments in 2003.
Ballmer, who has not commented on the matter, is likely to face substantial tax implications on his dividend income. With reported income of $656 million in 2018, it is estimated that he will be subject to the 20% tax on dividends for individuals earning over $500,000 annually, resulting in a tax payment close to $200 million.
This trend of significant dividend income is not unique to Ballmer. Warren Buffett’s Berkshire Hathaway is expected to collect $6 billion in dividends for the year, primarily from its investments in dividend-paying stocks such as Chevron, Bank of America, Apple, Coca-Cola, Kraft Heinz, and American Express. As major stakeholders in these companies, both Ballmer and Buffett highlight the substantial returns that can be generated through ownership of stocks with consistent dividend payouts.