Apple Announces Plans to Initiate Dividend and Share Repurchase Program

Apple Announces Plans to Initiate Dividend and Share Repurchase Program

Apple company expects to spend at least $45 Billion Over Three Years. On the 19^th of March, 2012 in the city of Cupertino, California Apple had announced plans to initiate a dividend and share repurchase program commencing later this year. This is subjected to the declaration by the board of directors that the company had planned to initiate a quarterly dividend of $2.65 per share. This process will begin from 1^st of July 2012.

Apple had provided live streaming of a conference call for discussing its plans which began at 6:00 a.m. PDT on Monday, 19^th March, 2012 at the link www.apple.com/quicktime/qtv/call31912. The company will not provide any updates on the current quarter. The company will also not provide any topics to be discussed other than cash. This webcast will be available for repeat telecasts for approximately two weeks thereafter.

The Board of Directors of the Company, in addition to this, had authorized a $10 Billion share repurchase program which will commence in the Company’s fiscal 2013. And it is expected to begin on September 30, 2012. The repurchase program is to be executed for over 3 years, with the primary objective of making neutral the impact of dilution from future employee’s equity grants and employee’s stock purchase programs.

When asked to Apple’s CEO, Tim Cook about this he told, “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. 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. We are extremely confident in our future and see tremendous opportunities ahead,” said Peter Oppenheimer, Apple’s CFO.

Apple designs Macs, these are the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple is leading the digital music revolution with its iPods and iTunes online store. Apple had reinvented the mobile with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

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