Apple to spend $45 billion on dividend and buy back

Apple still has 'plenty of cash' to run its business says CEO

Tags: Apple Incorporated
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Apple to spend $45 billion on dividend and buy back Apple is set to start paying dividends to shareholders again, having not paid since 1995.
By  Mark Sutton Published  March 19, 2012

Apple has announced plans for disposing of almost half of its cash reserves of $97.1 billion.

The company will spend around $45 billion over the next three years in shareholder dividends and stock buy backs.

In a statement, Apple CEO Tim Cook said that even after strategic investment and maintaining cash reserves, the company still has "plenty of cash".

Apple will begin paying a dividend of $2.65 per share in July 2012, the first time it has paid a dividend since 1995.

The company will begin a share buy back program, worth $10 billion, to run over three years from October.

"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," Tim Cook, Apple's CEO, said in a prepared statement.

"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," he added.

Apple said the share buybacks will help stave off earnings-per-share dilution from future employee stock grants and purchase programs.

2015 days ago
Vinod Mehra

Strategic move


www.vinodkmehra.com

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