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As expected, Apple announces dividend and share buyback program

Written by Andre Yoskowitz @ 19 Mar 2012 8:54 User comments (3)

As expected, Apple announces dividend and share buyback program Apple has used a special conference to announce a quarterly dividend of $2.65 per share, and to authorize a share buyback program.
The company says it expected to spend about $45 billion over the first three years of the plans, which will start in July.

Apple is expected to make $150 billion over the period, and should likely not have to dip into their current $97 billion cash hoarde.

Starting in October, Apple will have the option to buy back $10 billion worth of stock, making each share more valuable for investors.

Reads the release:
Apple® today announced plans to initiate a dividend and share repurchase program commencing later this year. Subject to declaration by the Board of Directors, the Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.
Additionally, the Company's Board of Directors has authorized a $10 billion share repurchase program commencing in the Company's fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.

We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You'll see more of all of these in the future,' said Tim Cook, Apple's CEO. 'Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.

Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilizing approximately $45 billion of domestic cash in the first three years of our programs,' said Peter Oppenheimer, Apple?s CFO. 'We are extremely confident in our future and see tremendous opportunities ahead.'

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3 user comments

119.3.2012 09:49

Bla Bla Bla,Apple makes alot of money,we the people keep buying their stuff.Get over it and move on!!!!!!!!

This message has been edited since its posting. Latest edit was made on 19 Mar 2012 @ 11:19

219.3.2012 11:15

Apparently they have an interest in Twitter

319.3.2012 14:13

They have an interest in 2 things. themselves & world domination. They have absolutely NO interest in public stock EVER going 'public', ever again. That's why they're continuing to buy back into their own company & drive it so sky high that no one can/will ever buy in. That way "YOU" never get a say so in their corporate design endeavors.

Secondly, when they put you in the middle of the human centipede, you'll wish you'd learned more about the how/why of your technology instead of being lazy & expecting technology doing your work for you. I.e., Apple's simple "Click here, it's easy" mentality approach to everything.

People don't turn up in line for their crap because it's an event... it's a cattle call at the slaughter house.

This message has been edited since its posting. Latest edit was made on 19 Mar 2012 @ 2:13

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