Seemingly out of blue, Apple has posted a press release announcing their dividend and stock repurchase program. Here’s the meat of Apple’s press release: 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, […]
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Apple Planning Dividend and Share Repurchase Program

Mar 19th 2012 by

 

 

Seemingly out of blue, Apple has posted a press release announcing their dividend and stock repurchase program. Here’s the meat of Apple’s press release:

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.”

Apple plans to spend a massive $45 billion on the program over the next three years. So, if you have Apple stock, it might be worth holding onto for a little while longer.

 

Also worth noting during the conference call, was Apple’s belief that things are just getting started. They believe both the smartphone and tablet markets still contain massive untapped potential. Plenty of room to grow. In fact, one analyst asked whether the company would be holding a conference call regarding the iPad’s opening weekend of sales. The company responded by stating it was a “record breaking” weekend of sales.

 

It seems there is still little sign of Apple slowing down in the near future, which is absolutely amazing, regardless of what you think of the company.

 

 

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