apple dividend tim cook
In a CNN article from March 2010, the author discussed why Apple and Steve Jobs shouldn’t pay a dividend. At that time the company was sitting on $40 billion in cash. Fast forward two years and times have changed – have they ever. Apple is now sitting on approximately $100 billion in cash and with no end in site as to how much cash it will be stockpiling. Some estimates adding another $50 billion over the next twelve months or $150 billion.
Today an Apple dividend has been announced with Apple stating that it plans to start paying a regular quarterly dividend of $2.65 per share beginning in July and that it will by back up to $10 billion of it’s own shares over a 3 year period. See below…
(Reuters) – Apple Inc said Monday it will initiate a regular dividend of $2.65 a quarter from July and will buy back up to $10 billion of its own shares starting in fiscal year 2013. The share buyback program is expected to be executed over three years with the primary objective of offsetting the impact of employee stock options and equity grants. “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 in a statement. The company said it anticipates using around $45 billion of domestic cash in the first three years of its programs
