Update: Apple Announces Dividend for Q4, $10B Share Repurchase for 2013; Closes Above $600
March 19, 2012 5:12 PM
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Apple plans to use $45 billion of its cash reserves over the next three years
It's no secret that Apple is a cash machine. The company rakes in billions of dollars thanks to a legion of loyal fans that lineup hours in advance to purchase its latest and greatest phones and
. The company has also seen a surge in its traditional PC business thanks to strong sales of its MacBook Pro/MacBook Air lineup of notebooks and iMac all-in-one desktop computers.
In late January, Apple reported profit of $13 billion on revenues of $46 billion for
fiscal Q1 2012
. The company saw its
stock price cross the $500/share threshold
in early February, making it worth more than Microsoft and Google combined. More recently,
has danced with the $600/share mark. In addition, Apple has
roughly $100 billion in cash/securities on hand
– a figure that CEO Tim Cook said is “more than we need to run the company.”
Apple CEO Tim Cook [Source: David Paul Morris/Bloomberg]
This morning, the company announced a $10 billion stock buyback program that will start in fiscal 2013. The buyback will take place over the course of three years with the primary goal being to "[neutralize] the impact of dilution from future employee equity grants and employee stock purchase programs."
A more immediate action being taking place is a quarterly dividend starting in fiscal Q4 2012. The quarterly dividend will equal $2.65/share.
“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," said Cook.
According to CFO Peter Oppenheimer, these programs will burn through $45 billion of Apple's cash reserves over the next three years.
Updated @ 5:12pm
AAPL just closed
for the first time in its history.
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RE: Investors win!
3/19/2012 4:11:15 PM
I agree that picking the next big website is a crapshoot, but to be fair Jobs isn't the one that brought apple back. Tony Fadell and Apple's massive marketing team are what brought Apple back. The only thing Jobs had done was introduce the NeXT UI into OSX (which was also an Apple decision, hence the buyout), and pushing the all-in-one mac. I don't understand why people give Jobs credit for the creativity and efforts of hundreds of employees. For some reason this only applies to Apple's endeavors, even though he also partially financed the rise of Pixar, though he, rightfully, doesn't get credit for things like Toy Story.
"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch
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