Apple to Pay Dividend, Buy Back Stock to Return Some of Cash
Source: Bloomberg
March 19 (Bloomberg) -- Mike Abramsky, an analyst with RBC Capital Markets, talks about Apple Inc.'s announcement today that it plans to initiate a quarterly dividend of $2.65 a share and authorized a $10 billion share buyback. Abramsky speaks with Betty Liu on Bloomberg Television's "In the Loop." (Source: Bloomberg)
Enlarge image Apple to Pay Dividend
Apple Inc. Chief Executive Officer Tim Cook fueled speculation an announcement might be coming when he said this year that Apple had more than we need to run a company, and that the board was considering its options. Photographer: David Paul Morris/Bloomberg
Apples cash pile has swelled amid surging demand for its products, such as the iPhone and iPad. Investors had urged Apple to return some of the balance in the form a dividend. Chief Executive Officer Tim Cook fueled speculation an announcement might be coming when he said this year that Apple had more than we need to run a company, and that the board was considering its options.
We are extremely confident in our future and see tremendous opportunities ahead, Chief Financial Officer Peter Oppenheimer said in the release. Apple said the company plans to pay out about $45 billion over three years.
Read more: http://www.bloomberg.com/news/2012-03-19/apple-to-pay-dividend-buy-back-stock-to-return-some-of-its-cash.html
gtar100
(4,192 posts)so that they don't feel the need to kill themselves due to overwork?
No.
Wall Street needs to learn to work with the world in a symbiotic relationship because right now they are nothing but parasites.
Enjoy your dividends stockholders. Don't forget the cost in human suffering it took to make it.
raouldukelives
(5,178 posts)Most peoples sense of social justice ends at their bank statement.
GeorgeGist
(25,321 posts)a pittance. Phuck Apple.
Skinner
(63,645 posts)No matter how big or small the dividend is, technically it's coming out of the stock owner's pocket anyway. It's not charitable giving by Apple.
Broderick
(4,578 posts)Dividends pay the bills in some cases and technically to my understanding they don't come from the shareholders. I have a limited stock portfolio and dividends are a share of the profits in the company and many times a good dividend payer and profitable company increases stock value. Those looking for dividends invest in those payers. I don't understand how it's paid for by shareholders in a technical sense. It's a share of the company's performance not in the actual performance of the share price. Again, my knowledge is limited and by no means is my portfolio one to brag about. I have looked traditionally for dividend payers as a performance marker because my investments are long term.
Skinner
(63,645 posts)When a company does well, and profits are earned, the shareholders benefit either by the value of the stock going up, or by a dividend being paid out (or both).
Broderick
(4,578 posts)Stock prices are strong and stable with a good dividend paying company because of folks like me that invest long term for just that reason.
Skinner
(63,645 posts)...if you own the company, then you are paying the dividend.
Companies are owned by their shareholders.
Broderick
(4,578 posts)Or those unwilling to pay a dividend. I certainly don't have the luxury to play the game. To me it's simple return on investment rather than get rich quick on a stock jump or dive. 2 percent is a start. I think someone worked the numbers. It's better than a savings account.
Response to GeorgeGist (Reply #2)
Tesha This message was self-deleted by its author.
Bonhomme Richard
(9,000 posts)A Brand New World
(1,119 posts)n/t
onehandle
(51,122 posts)With the rest, I would love to see them move manufacturing to the U.S. But unless Google, Dell, HP, Microsoft, Intel etc... do so as well, fat chance.
So with that put aside... BUY TWITTER!
Please?
They could also buy Samsung. I would enjoy that on many, many levels.
Guy Whitey Corngood
(26,501 posts)onehandle
(51,122 posts)Apple makes Apple products.
They have hundreds of competitors that make the vast majority of devices on the market.
Guy Whitey Corngood
(26,501 posts)on that course. I say let them compete. Apple seems to be big and profitable enough.
quakerboy
(13,920 posts)Either one actually.
I agree with you about us manufacturing. Apple likes to stand out, to do things first. Why not be the first to move manufacturing back to the states? But that seems unlikely. All the more so with the dividend being paid. More money will be needed to provide future dividends, and that will not be comparable with the higher costs of moving manufacturing.
But on the others... I don't believe that apple could buy Samsung. Samsung is about twice as large as Apple, when it comes to net worth. Apple just doesn't have the money. And that would be if they wanted to own Samsung for some reason. But even if they could, I fail to see what benefit you perceive from the new availability of the iWasher and the iMicrowave.
onehandle
(51,122 posts)Apple's is $558 Billion and is expected to be well above $700 Billion later in the year.
They could afford to make a move on Samsung, but the Feds wouldn't let them, and rightfully so.
I just find the possibility humorous.
Anyway, soon it will cost Samsung $15 to $25 dollars per phone or tablet (going to Apple) just to make their phones and tablets. That's what analysts are predicting as the outcome of global suits going on right now.
That probability is very humorous indeed.
Apple, the world's most valuable company, sits on $97.6 billion in cash and securities. The decision to return some of that money to investors is a clear signal that Apple is taking a different approach in the post-Jobs era.
http://online.wsj.com/article/AP64c8c524804541618d37c87c80921dd2.html