Summary: Apple announced its plans to spend $45 billion of its cash reserve over the next three years, including a cash dividend and a $10 billion share repurchasing program.
Apple, the world’s richest technology company, announced its plans to spend $45 billion of its cash reserve over three years.
It sounds like a lot, but compared to it raking in over $13 billion in profit in the last quarter alone, it barely scrapes the surface of Apple’s value as a company.
The company will issue a quarterly divided of $2.65 a share. In doing so, it bows down to investor pressure, but keeps potential investors interested. Apple doesn’t need to give back to those who invest, however, as it continues to show considerable growth.
The board has also authorised a $10 billion share buyback program to start in fiscal 2013, after September 1, and to be carried through over three years. This gives Apple the option to buy more stock if it wishes.
In a press release, the reason for its share repurchasing plan is to: “neutralize the impact of dilution from future employee equity grants and employee stock purchase programs.”
The dividend starts in the fiscal fourth-quarter, after July 1. It is the first dividend Apple has issued in 17 years, ZDNet's Jason D. O'Grady reports.
“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,” chief executive Tim Cook said.
“You’ll see more of all of these in the future.”
Shares of Apple were up 2.4 percent in premarket trading. Earlier this month, the company scraped the $600 a share mark, but fell slightly over the following days.
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