Apple Announces Dividend and Share Repurchase Of $45 Billion In Next Three Years
Apple has announced plans to issue a dividend and they have also announced a share repurchase program. Apple is planning on initiating a quarterly dividend of $2.65 per share sometime in the fourth quarter of this year, which starts on July 1, 2012. Apple’s board of directors have also approved of a $10 billion share repurchase program in Apple’s fiscal 2013 starting September 30, 2012.
The repurchase program is expected to happen over the next three years with the 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,” stated Apple CEO Tim Cook. “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.”This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry