Ex-Microsoft CEO Steve Ballmer to earn $1bn annually doing nothing
Steve Ballmer, former Microsoft CEO and currently the world's sixth richest person, is on track to receive almost $1 billion (Rs. 8,323 crore) in dividends from the tech behemoth in 2024. This comes after Microsoft's decision to raise its quarterly dividend to 75 cents per share, amounting to $3 per share annually. As of 2014, Ballmer held 333.2 million Microsoft shares, equivalent to a 4% stake, and has not made any changes to his holdings since then.
Dividend history and tax implications
Microsoft has been steadily increasing its dividend payouts to shareholders since 2003. Individuals earning a taxable income of $500,000 a year or more are liable for 20% tax, as per US tax laws. Ballmer's reported income in 2018 was $656 million, so it is safe to say that he is likely to face a 20% tax on his dividends. That means he will pay close to $200 million in taxes on the Microsoft dividends he collects.
Other investors benefiting from dividends
Ballmer isn't the only investor poised to make substantial earnings from dividend-paying stocks. According to a Wall Street Journal analysis, Warren Buffett's Berkshire Hathaway is predicted to rake in $6 billion in dividends this year. Most of the stocks in Berkshire Hathaway's portfolio pay dividends, including Chevron, Bank of America, Apple, Coca-Cola, Kraft Heinz, and American Express.
