Update: Apple Announces Dividend for Q4, $10B Share Repurchase for 2013; Closes Above $600
March 19, 2012 5:12 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
RE: Investors win!
3/19/2012 4:25:48 PM
OMG so much...
(1) How do you know that Jobs left no money to education or foundations? The contents of his will (and what he did with his money beforehand) have been kept secret --- he was a private man who did not want his name in the news, even in the context of things like the name of a hospital wing.
(2) What is "saturating a stock"? And why is it a bad thing?
(3) So you think that the nominal price of a share is important? The stock is cheap if it goes through a split and costs $70 a share, but is expensive if it does not split and costs $700 a share? Good luck with that investment strategy --- there are a whole lot of penny stocks available outside NASDAQ, through pink sheets that will, I'm sure, make you rich.
And if this is something that upsets you, by all means don't go look at the price of Berkshire Hathaway.
Did Steve Jobs save Apple? That is highly debatable.
Right. And did Al Qaeda attack the US? Highly debatable. Does Intel make faster chips than ARM? Highly debatable. Was Obama born in the US? Highly debatable.
"Mac OS X is like living in a farmhouse in the country with no locks, and Windows is living in a house with bars on the windows in the bad part of town." -- Charlie Miller
Report: iPad 3 Pre-Orders Sold Out, Shipments Could Be Delayed Up to 3 Weeks
March 12, 2012, 10:27 AM
Apple CEO Tim Cook: We Have More Money Than We Need
February 24, 2012, 8:13 AM
Quick Note: Apple Stock Surges Past $500/Share
February 13, 2012, 10:09 AM
Apple Has Another Blowout Quarter with $13B in Profit; Sells 37M iPhones, 15M iPads
January 24, 2012, 5:02 PM
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Most Popular Articles
iPhones May Get Curved Screens Next Year
August 24, 2016, 6:45 AM
Drones at the Airport
August 26, 2016, 5:00 AM
First Apple Computer Auctions for $815,000
August 27, 2016, 7:51 AM
5 Easy Ways to Lower Blood Pressure By Monique C. Bethell, Ph.D.
August 25, 2016, 8:00 AM
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
Latest Blog Posts
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information