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Apple Announces Plans to Initiate Dividend and Share Repurchase Program

Discussion in 'News' started by Cristian_25H, Mar 19, 2012.

  1. Cristian_25H

    Cristian_25H News Poster

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    Apple today announced plans to initiate a dividend and share repurchase program commencing later this year.

    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."

    "Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilizing approximately $45 billion of domestic cash in the first three years of our programs," said Peter Oppenheimer, Apple's CFO. "We are extremely confident in our future and see tremendous opportunities ahead."
     
  2. Steevo

    Steevo

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    I thought reinvesting in the company with employee dollars was illegal?
     
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  3. JanJan

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    how does repurchase prevent dilution from increased employee benefit?
     
  4. Fourstaff

    Fourstaff Moderator Staff Member

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    But this is not reinvesting the company with employee dollars.

    Employees high up the pecking order (like CEO and so on) usually get their bonus in form of shares, to keep the number of shares in the market roughly constant you will need to have a form of share buyback program, otherwise existing shareholders will have the size of their share slowly decrease.
     
    JanJan says thanks.
  5. JanJan

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    that makes sense. thanks
     
  6. Darkleoco

    Darkleoco

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    Kind of wishing I had bought me some Apple stock right about now lol
     
  7. Fourstaff

    Fourstaff Moderator Staff Member

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    It was about $400 last November, but I thought its too expensive. Damn those hippies :banghead:
     

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