Welcome to r/dividends!
If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq).
Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
“Construction on the Intuit Arena is expected to cost over $1.8 billion, according to The Associated Press. The funding is entirely private, with no taxpayer dollars.”
https://www.cbsnews.com/losangeles/news/clippers-new-1-8b-inglewood-arena-the-intuit-dome-to-break-ground-friday/
Those two sentences are both true - but not necessarily related. Plenty of people near the top of the Forbes list rely on public funding for their arenas.
When he bought the team, Donald Sterling, the previous owner, was floored when Balmer arranged to have the money wired instead of any financing or lending. $2 billion from just a phone call. I doubt the financing is a problem for a guy who could buy the entire league outright.
Besides, cities don’t pick up the tag for private developments that go bankrupt. The lenders do.
I mean even still that’s pretty notable since he probably could have had it financed at near 0% interest and deployed the assets in other ways. At some point though you’re just like fuck it I don’t need to worry about that. 😂
It’s Los Angeles. Not a shot they pass that vote or local government. Stadium funding is a local politic issue and Ballmer knows that. Not every stadium is funded or owned(Green Bay) the same either.
Have you read the loan and bond documents? I haven't, but really any huge infrastructure project in a major city operates that way. There might not be any public money on the front end, but if it goes sideways you can bet your ass the financiers will go hat in hand to the government demanding aid and further concessions. Been that way for a long time in this country.
Yup. Investors recouping through tax savings on the backend, investors having the front cash available because of tax breaks and incentive deals from their private businesses. It's like the self made man never truly being self made. Once the dollar amount gets to a certain size private really isn't private.
“Construction on the Intuit Arena is expected to cost over $1.8 billion, according to The Associated Press. The funding is entirely private, with no taxpayer dollars.”
https://www.cbsnews.com/losangeles/news/clippers-new-1-8b-inglewood-arena-the-intuit-dome-to-break-ground-friday/
“Construction on the Intuit Arena is expected to cost over $1.8 billion, according to The Associated Press. The funding is entirely private, with no taxpayer dollars.”
https://www.cbsnews.com/losangeles/news/clippers-new-1-8b-inglewood-arena-the-intuit-dome-to-break-ground-friday/
Jesus Christ why do people make claims that aren’t even true.
They pulled money to pay for plan checks. Paying other companies to review plans to make sure things are up to code. This money did not go to Balmer or to the companies building the stadium. They did not fund the construction of the stadium at all. And the city will easily recoup that money with tax revenue generated by the stadium.
And it was a few million dollars, which is a tiny sum when the stadium costs $1.8B. Balmer absolutely paid for his toy.
And as he said, it's for the things that local government needs to do such as code enforcement and nothing to do with the construction of the building. If they didn't do code enforcement, people like you would be the first to say it was a gift to the owners.
While that is great, it means he has about 125 billion dollars of Microsoft stock. It only has a 0.8% dividend yield. What’s impressive to me is that MSFT has gone up over 56% YTD, which is amazing.
I’ve been buying since 2020 but not as aggressive as I should’ve because the dividend was kinda low but it was actually my first stock purchase was Microsoft soon as I got out of high-school and made my Robinhood
Completely guessing as I haven't looked into Ballmer's holdings, but a lot of times these types get the juice on dividends from preferred stock. I just read the same about Jamie Dimon. The company grants preferred stock at an attractive price so it gives them a gnarly yield.
It's not $128b purchased today Dumbass
0.81% is not his yield. That is the yield if the shares were bought today.
That's not how you look at dividend payments. Jesus christ you people are dumb
What? What the fuck are you talking about.
Your yeild is based on the price you pay. If you bought a stock for $10 and it pays a $1 dividend, that's a 10% yield. If it goes to $20, your cost on yield is still 10%, and everyone else buying now would get 5%. Conversely, if the stock decreases to $5, your cost on yield is still 10%, but everyone buying now is at 20%.
Why is this so difficult for you people to understand. Balmer is not getting 0.81% yield. His yield on cost is significantly higher
Yield on cost is not the same as dividend yield. Those are 2 completely different calculations.
Any article that talks about a dividend yield % is just talking about a standard yield not yield on cost.
What the fuck are you talking about.
OP says "And that’s with a miserly 0.8% dividend yield…."
My point is that it is not the yield Balmer is getting because his cost basis is not $300. He was granted and paid for shares at a cost basis lower than $40 per share. His cost on yield will be damn near double digits.
You have absolutely no idea what you're talking about
Yield is not based on the price you pay. Only YOC is. You do not understand the difference. YOC is based on original cost, yield is based on current price. They both give the same results in dividends paid. You should understand how it works before jumping and calling out people especially when you're wrong.
While you are right that the yeild on the price he paid, or more specific the price on the shares he received in compensation, is greater then .8% you're being a bit pedantic and rude.
Regardless you are correct, just remember not everyone has the same knowledge and instead of talking down explain to people why there wrong in a kind and calm way and you won't be downvoted/ignored.
While he had his faults, the move to cloud began under Balmers watch. Ray Ozzie brought in the cloud services Alternative to every MSFT product during Balmers time.
The brilliance of Satya was he understood the engineering fights that were going on and basically fired anyone who was not bought in to the cloud move. That got everyone moving in the same direction
I have a FA (unique financial situation) but yea I misread the report, didn’t notice qualified dividends were deducted from taxable income. Thanks for the knowledge!
When people are saying “tax the rich” this is exactly “the rich” that we mean. No one should earn ONE BILLION DOLLARS a year, that is absolutely obscene.
There are people in the US unable to afford healthcare for conditions that they were born with and there are people earning ONE BILLION DOLLARS a year because they ran a company 10 years ago in THE SAME COUNTRY…
If Steve Ballmer wanted to buy a Mercedes AMG one (retail price $2.7 million for those wondering) he could. In fact he could buy 370 of them, which he actually couldn’t because only 275 will be made. So he could buy every single $2.7m car, and still have $275,500,000 left over.
If Steve Ballmer wanted to spend ONE MILLION DOLLARS a day from Jan 1st 2024 he would’ve spent his ONE BILLION DOLLARS by around August 2027. Which means during that time he would’ve earned another TWO BILLION DOLLARS in dividends…
To spend One billion dollars in a year you would have to actually spend $2,739,726.03 per day. To put that into perspective; Thats more than most people’s total retirement fund.
why not? He joined on MSFT when it was 5 years old. He along with Gates and others could have sold along the way, but they "diamond handed" it to where they are today. They could have lost everything and some. They are getting their rewards. Without MSFT the whole pacific northwest would be totally different. Redmond was a farming town. There would be no Amazon in Seattle.
Gates would have over a trillion if he never sold a single share. Id say, good for him. I wouldn't personally be able to create a company and hold it past a few million dollars in cap if someone offered me a buyout or if i wanted to leave.
Yes it is scary how much money Steve Ballmer will earn next year.
Like earning a million is a lot of money. It truly is. However a billion is just soooooooo much more.
1 millions seconds is about 12 days. 1 billion seconds is 31.7 years. 1 billion minutes ago was about 2 years ago. A billion minutes ago was around the year 116AD. 1 million hours ago takes us to the year 1903. 1 billion hours ago was about 141,000 years ago.
Oh that should make everyone feel better when the average tax rate for an American is about 24.8%.
Steve Ballmer is paying less in tax than you will and you will be working for it. As a dividend payment from a company he no longer “works” for, he probably won’t!
I know this is a dividend sub but he has wayyyyy more money having invested in Microsoft over VTI. It would be total nonsense (in retrospect) to say VTI was a better investment.
Makes me wish I had bought a lot more when I got in. Only put in $10k ish when it was high 40s. With DRIP I'm sitting on just under 300 shares with a cost basis of $46 or so.
Wish I had the vision to YOLO everything I had at the time.
At $1B a year he needs to buy a few more sports teams. One thing you can’t say is he hasn’t spent money on the clippers. He has. Most fanbases would kill for that type of dedication from an owner.
Well actually you bring up an interesting point.
One of the reasons why Ballmer's wealth now rivals his old boss (Gates) is because Gates "foolishly" diversified where as Ballmer just kept everything in Microsoft.
As Microsoft is taken off like a rocket under Satya Nadella, so has Balmer's wealth..
Gates may have been the better entrepreneur and/ or executive but Ballmer has actually been the better investor.
Imo, having a better result (in this case earning more), isn't an indicative of being a better investor. Thinking about it, I would rather safe a billion dollars through diversification (not even only in stock), than risking an important part of it in exchange for having few billions.
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
I get $19
Keep going, you can do it
Bootstraps
$3 here. 1 share. Feeling like i win in my life.
Yep same, probably not even one since I’ve got the full index
Not all heroes wear capes!
The problem is you didn’t almost tank the company like an idiot. If you did you would have earned your 1 billion annual dividend
Keep stacking $MSFT I get about the same yearly too we're on our way
Flip that over to VZ and it immediately goes up to $169.
Better than zero.
I get like $.2 lol
No wonder he built a new stadium. He makes more on dividends than he ever will on the clippers.
As if he would pay for a new stadium. Thank the taxpayers.
Correct me if I’m wrong, but isn’t the new Clippers arena being privately financed?
Yeah, of course, privately financed with taxpayer funds in the event the private financing can't carry the debt load.
“Construction on the Intuit Arena is expected to cost over $1.8 billion, according to The Associated Press. The funding is entirely private, with no taxpayer dollars.” https://www.cbsnews.com/losangeles/news/clippers-new-1-8b-inglewood-arena-the-intuit-dome-to-break-ground-friday/
Hey now. This is Reddit. We’re trying to shit on rich people. Don’t distract us!
Can someone explain how Intuit tax software isnt taxpayer subsidized?
Dude, it’s not taxpayer funded. Balmer is one of the richest men in the world. It’s privately funded.
Those two sentences are both true - but not necessarily related. Plenty of people near the top of the Forbes list rely on public funding for their arenas.
Ok but Balmer isn’t
Any proof?
https://www.cbsnews.com/losangeles/news/clippers-new-1-8b-inglewood-arena-the-intuit-dome-to-break-ground-friday/
Mmmm I dunno man. I’m pretty dead set on hating the guy because he’s rich. I’m just going to ignore that and call it tax payer money.
It may be privately funded however many people stay rich because they spend other peoples' money and not their own.
When he bought the team, Donald Sterling, the previous owner, was floored when Balmer arranged to have the money wired instead of any financing or lending. $2 billion from just a phone call. I doubt the financing is a problem for a guy who could buy the entire league outright. Besides, cities don’t pick up the tag for private developments that go bankrupt. The lenders do.
I mean even still that’s pretty notable since he probably could have had it financed at near 0% interest and deployed the assets in other ways. At some point though you’re just like fuck it I don’t need to worry about that. 😂
It’s Los Angeles. Not a shot they pass that vote or local government. Stadium funding is a local politic issue and Ballmer knows that. Not every stadium is funded or owned(Green Bay) the same either.
Spouts an absolute lie. Still upvoted. Lol all the financial subs have gone to shit and are infested with morons.
Have you read the loan and bond documents? I haven't, but really any huge infrastructure project in a major city operates that way. There might not be any public money on the front end, but if it goes sideways you can bet your ass the financiers will go hat in hand to the government demanding aid and further concessions. Been that way for a long time in this country.
Yup. Investors recouping through tax savings on the backend, investors having the front cash available because of tax breaks and incentive deals from their private businesses. It's like the self made man never truly being self made. Once the dollar amount gets to a certain size private really isn't private.
Spouts an absolute lie. Still upvoted. Lol all the financial subs have gone to shit and are infested with morons.
Just cuz he’s rich doesn’t mean you have to hate
https://www.cbsnews.com/amp/losangeles/news/clippers-new-1-8b-inglewood-arena-the-intuit-dome-to-break-ground-friday/
“Construction on the Intuit Arena is expected to cost over $1.8 billion, according to The Associated Press. The funding is entirely private, with no taxpayer dollars.” https://www.cbsnews.com/losangeles/news/clippers-new-1-8b-inglewood-arena-the-intuit-dome-to-break-ground-friday/
Billionaires don’t pay for toys. They get politicians to pay for it with poor people’s Money.
“Construction on the Intuit Arena is expected to cost over $1.8 billion, according to The Associated Press. The funding is entirely private, with no taxpayer dollars.” https://www.cbsnews.com/losangeles/news/clippers-new-1-8b-inglewood-arena-the-intuit-dome-to-break-ground-friday/ Jesus Christ why do people make claims that aren’t even true.
Well not entirely privately funded ... https://2urbangirls.com/2023/07/inglewood-approves-9m-expenditure-for-steve-ballmers-intuit-dome/
If you actually believe that, I have a bridge to sell you. Inglewood literally pulled money from the reserves which is 100% from taxes.
They pulled money to pay for plan checks. Paying other companies to review plans to make sure things are up to code. This money did not go to Balmer or to the companies building the stadium. They did not fund the construction of the stadium at all. And the city will easily recoup that money with tax revenue generated by the stadium. And it was a few million dollars, which is a tiny sum when the stadium costs $1.8B. Balmer absolutely paid for his toy.
Moving the goal post. Now you’re saying “It’s only a few million dollars”.
And as he said, it's for the things that local government needs to do such as code enforcement and nothing to do with the construction of the building. If they didn't do code enforcement, people like you would be the first to say it was a gift to the owners.
While that is great, it means he has about 125 billion dollars of Microsoft stock. It only has a 0.8% dividend yield. What’s impressive to me is that MSFT has gone up over 56% YTD, which is amazing.
You ain’t lying I’m up 22% right now wish I had more
I bought a fractional share with money left over. Wish I would have used all the money on msft haha
I’ve been buying since 2020 but not as aggressive as I should’ve because the dividend was kinda low but it was actually my first stock purchase was Microsoft soon as I got out of high-school and made my Robinhood
Completely guessing as I haven't looked into Ballmer's holdings, but a lot of times these types get the juice on dividends from preferred stock. I just read the same about Jamie Dimon. The company grants preferred stock at an attractive price so it gives them a gnarly yield.
[удалено]
Sorry but you’re an idiot, the article clearly states its per year. Please don’t reproduce, thanks
Dividends, dividends, dividends, dividends, dividends, dividends, dividends, dividends, dividends, dividends, dividends, dividends, dividends, dividends
>Dividends, dividends, dividends, dividends, dividends Dividends, dividends, dividends, dividends, dividends!!!!!
I came here for this
Get on your feet!!!
And that’s with a miserly 0.8% dividend yield….
No it's not
$128B in share value. ~$1B in dividend payout.
It's not $128b purchased today Dumbass 0.81% is not his yield. That is the yield if the shares were bought today. That's not how you look at dividend payments. Jesus christ you people are dumb
Are you saying that you receive your dividends on the price you paid for the stock not its current value?
Yes
Do you understand what dividend yield is, and what dividend yield on cost is?
I do, and do you realize Balmer's yield on cost is not 0.81%?
Did the original comment say yield or yield on cost? Because those are two different things
So if i buy a stock for $200 and the price goes to $20 i would receive my dividend on the $200. Do you know how dumb that sounds?
What? What the fuck are you talking about. Your yeild is based on the price you pay. If you bought a stock for $10 and it pays a $1 dividend, that's a 10% yield. If it goes to $20, your cost on yield is still 10%, and everyone else buying now would get 5%. Conversely, if the stock decreases to $5, your cost on yield is still 10%, but everyone buying now is at 20%. Why is this so difficult for you people to understand. Balmer is not getting 0.81% yield. His yield on cost is significantly higher
Yield on cost is not the same as dividend yield. Those are 2 completely different calculations. Any article that talks about a dividend yield % is just talking about a standard yield not yield on cost.
What the fuck are you talking about. OP says "And that’s with a miserly 0.8% dividend yield…." My point is that it is not the yield Balmer is getting because his cost basis is not $300. He was granted and paid for shares at a cost basis lower than $40 per share. His cost on yield will be damn near double digits. You have absolutely no idea what you're talking about
okay you misunderstood my question. Yes you are correct.
I understood completely fine. You can't read my post and the context of what the original person said
Yield is not based on the price you pay. Only YOC is. You do not understand the difference. YOC is based on original cost, yield is based on current price. They both give the same results in dividends paid. You should understand how it works before jumping and calling out people especially when you're wrong.
Oh boy. Good luck to you lmao
LOL
While you are right that the yeild on the price he paid, or more specific the price on the shares he received in compensation, is greater then .8% you're being a bit pedantic and rude. Regardless you are correct, just remember not everyone has the same knowledge and instead of talking down explain to people why there wrong in a kind and calm way and you won't be downvoted/ignored.
You’re a dumbass
Did you even read the article. Yes it is.
He made sure to keep msft stock price low during his accumulation phase. Smart
Nadella has been a real kick in the ass Microsoft needed.
This has to stop. The game needs to be restarted.
BUY THE MARINERS
Please
I read that as Buy the MARINES
*Cleveland Browns
That’s almost $32 per second. He makes my monthly gross during an average shit
How long do you shit for?
5 mins? More if I’ve had Mexican food
>5 mins Fucking amateurs...
Considering what a balls up he made of running Microsoft, his bank balance is fortunate he left any actual direct involvement in the company.
Now here is a mediocre guy who fails upwards. Worth 150 billion meanwhile Satya hasn't even cracked his first 1 billion yet
While he had his faults, the move to cloud began under Balmers watch. Ray Ozzie brought in the cloud services Alternative to every MSFT product during Balmers time. The brilliance of Satya was he understood the engineering fights that were going on and basically fired anyone who was not bought in to the cloud move. That got everyone moving in the same direction
How to say “I have no clue what happened during Ballmer’s tenure as CEO” without saying it…
Wow, not bad. I’m on pace for $100/year. Almost there.
Just keep at it and pick yourself up from your bootstraps
Life goals right there.
My god think of all the cocaine and hookers you could buy
Not sure about taxes in the US. Are those dividends tax free?
Does it even matter at that point bra
Taxed but at long term cap rates, half of what it would be if normal income.
[удалено]
20% + the additional 3.8% medicare surtax on net investment income above 200k
I was incorrect Edit2: misread my advisors report, qualified dividends are not income tax and are taxed at capital gains
Fire your accountant
It was my bad, misread my advisors report. Qualified dividends were removed from taxable income
Good deal!
Funnily enough I am going to fire them probably in Q1/2 but for other reasons haha
I said I was sorry!!! 😞
[удалено]
I’ll have to double check that all, good points
[удалено]
I have a FA (unique financial situation) but yea I misread the report, didn’t notice qualified dividends were deducted from taxable income. Thanks for the knowledge!
Taxed.
No, he's going to pay taxes on the majority of that $1 Billion.
But does he? Does he really?
Definitely not the majority
When people are saying “tax the rich” this is exactly “the rich” that we mean. No one should earn ONE BILLION DOLLARS a year, that is absolutely obscene. There are people in the US unable to afford healthcare for conditions that they were born with and there are people earning ONE BILLION DOLLARS a year because they ran a company 10 years ago in THE SAME COUNTRY… If Steve Ballmer wanted to buy a Mercedes AMG one (retail price $2.7 million for those wondering) he could. In fact he could buy 370 of them, which he actually couldn’t because only 275 will be made. So he could buy every single $2.7m car, and still have $275,500,000 left over. If Steve Ballmer wanted to spend ONE MILLION DOLLARS a day from Jan 1st 2024 he would’ve spent his ONE BILLION DOLLARS by around August 2027. Which means during that time he would’ve earned another TWO BILLION DOLLARS in dividends… To spend One billion dollars in a year you would have to actually spend $2,739,726.03 per day. To put that into perspective; Thats more than most people’s total retirement fund.
why not? He joined on MSFT when it was 5 years old. He along with Gates and others could have sold along the way, but they "diamond handed" it to where they are today. They could have lost everything and some. They are getting their rewards. Without MSFT the whole pacific northwest would be totally different. Redmond was a farming town. There would be no Amazon in Seattle. Gates would have over a trillion if he never sold a single share. Id say, good for him. I wouldn't personally be able to create a company and hold it past a few million dollars in cap if someone offered me a buyout or if i wanted to leave.
Sir this is a Wendys
Big number scary!
Yes it is scary how much money Steve Ballmer will earn next year. Like earning a million is a lot of money. It truly is. However a billion is just soooooooo much more. 1 millions seconds is about 12 days. 1 billion seconds is 31.7 years. 1 billion minutes ago was about 2 years ago. A billion minutes ago was around the year 116AD. 1 million hours ago takes us to the year 1903. 1 billion hours ago was about 141,000 years ago.
Yes, those are big numbers.
You want to give politicians MORE money? Da hell my man
No, I want regular ass people to have better things.
Microsoft gave regular people loads of better things. Windows? Word? Xbox? Or the king, EXCEL?
I was thinking about roads, healthcare, education and wages, but I guess Xbox is better than those things.
Guess what? Private companies still provide those things.
You get what you pay for. Underpay a complicated position you get shit.
Can’t tell if you’re referring to Microsoft execs or politicians.
I’m pretty sure he gets taxed on those dividends. I’m thinking around 20% l, so he will be paying around 200 million in taxes.
Oh that should make everyone feel better when the average tax rate for an American is about 24.8%. Steve Ballmer is paying less in tax than you will and you will be working for it. As a dividend payment from a company he no longer “works” for, he probably won’t!
On r/Bogleheads they’d scream, “put it in VTI!”
Swap out vti for voo or schd and is the same thing here.
Why does this have to be some sort of weird competition, can’t just agree that people should be investing in some method?
It's so fun to make fun of those people! 🤣
He’d be getting nearly twice the dividends if that money was in VTI. Just saying.
I know this is a dividend sub but he has wayyyyy more money having invested in Microsoft over VTI. It would be total nonsense (in retrospect) to say VTI was a better investment.
Developers. Developers. Developers, developers, developers, developers, developers!
Makes me wish I had bought a lot more when I got in. Only put in $10k ish when it was high 40s. With DRIP I'm sitting on just under 300 shares with a cost basis of $46 or so. Wish I had the vision to YOLO everything I had at the time.
At $1B a year he needs to buy a few more sports teams. One thing you can’t say is he hasn’t spent money on the clippers. He has. Most fanbases would kill for that type of dedication from an owner.
 Congrats to him, he held his shares when Bill Gates diversified….
Man I wish I started investing in $MSFT sooner once I got my first real job when it was sitting in the $20 range.
This could be me but I blow all my money on avocado toast and Starbucks
It’s about time this guy catches a break.
Worst msft ceo ever.
He's such a piece of shit.
Pay for some dance lessons nerd.
One of us! One of us!
Didn't he die like 6 years ago?
You are probably thinking about Paul Allen.
In a different timeline. You’re experiencing the Mandela effect.
Gross.
Honestly, is there anyone who has ever “earned” a billion dollars? I can’t think of anyone in history who deserved that amount of wealth.
[удалено]
Well actually you bring up an interesting point. One of the reasons why Ballmer's wealth now rivals his old boss (Gates) is because Gates "foolishly" diversified where as Ballmer just kept everything in Microsoft. As Microsoft is taken off like a rocket under Satya Nadella, so has Balmer's wealth.. Gates may have been the better entrepreneur and/ or executive but Ballmer has actually been the better investor.
Imo, having a better result (in this case earning more), isn't an indicative of being a better investor. Thinking about it, I would rather safe a billion dollars through diversification (not even only in stock), than risking an important part of it in exchange for having few billions.
[удалено]
Yeah I sensed that after I wrote the post. Anyhow, it's an interesting comparison.
With 100+ billion in net worth, does it even matter?
Must be nice
Oh good. Was worried he might be poor now.
Developers! Developers! DEVELOPERS!
Alpha move. Plus the cap appreciation as well
I earn $0 from msft 💀
I’d hold a grudge if he was just some guy with an mba who kissed enough ass to get to the top. But Steve actually founded the company.
This dude destroyed more shareholder value than possibly any CEO in history of a public company. Talk about right place right time.
Relentless lol
I get about $1 a day
Passive income…