Apple spends some of its $98B cash hoard

Published:

Apple spends some of its $98B cash hoard

Computer maker to pay $2.65 a share quarterly and spend $10B buying up shares

An Apple employee counts money as a customer purchases Apple's new iPad in New York March 16. The company announced Monday it will use some of its vast cash holding to pay a dividend to shareholders. An Apple employee counts money as a customer purchases Apple's new iPad in New York March 16. The company announced Monday it will use some of its vast cash holding to pay a dividend to shareholders.

Apple Inc. is finally putting its cash hoard to work, introducing a quarterly dividend of $2.65 US a share

and starting a $10 billion share buyback program.

Apple says the dividend will start in its fiscal fourth quarter, which begins July 1.

The buybacks will begin in its next fiscal year, which starts Sept. 30.

Apple is sitting on $97.6 billion in cash and securities. For years, it has resisted calls to reward

shareholders with some of that money.

Since the death of CEO Steve Jobs, management has signaled that it's been considering options for the money.

“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.”

The expectation of a dividend has already helped send the stock up 37 per cent since Apple's latest earnings report.

 In pre-market trading, the shares touched a record level of $600.23, up 2.5 per cent from Friday's close.

Entry #11

Comments

Avatar pumpi76 -
#1
I DONT KNOW IF I HEARD WRONG BUT I HEARD SOME OF IT WAS GOING TO CUSTOMERS...IF IT WAS ME, I WOULD HAD TAKEN: $30 BILLION PLACE IT IN THE STOCK MARKET TO EARN INTERESTS AND WITH THE: $1.5 BILLION A YEAR I WOULD HAD CREATED A: VIRTUAL CASINO GAMES SWEEPSTAKES AND A GAMESVILLE.COM VIRTUAL ONLINE GAMES SWEEPSTAKES OR A VIRTUAL STOCK MARKET/FOREX SWEEPSTAKE USING REAL READINGS FROM THE STOCK MARKET...AND I WOULD HAD TAKEN THE FIRST 2 YEARS WHICH WILL HAD BEEN $3 BILLION DOLLARS AND GIVE IT TO THE STEVE JOB FAMILY, MAYBE $4.5 BILLION DOLLARS OR 3 YEARS WORTH...
BUT THAT JUST ME...lol...
Avatar pumpi76 -
#2
OR CREATE A GLOBAL WEATHER VIRTUAL EARTH/GLOBE SWEEPSTAKE...OR A VIRTUAL GLOBAL EARTH SIMULATOR GLOBE SWEEPSTAKE...
Avatar Todd -
#3
Apple should really do a split. $600 a share is ridiculous.
Avatar sully16 -
#4
A split would be nice. 4 to one ratio would be nicer, at 150 you could turn around and put in a limit order for 140.00 and see if theres a bite.
Avatar JADELottery -
#5
Ah... Oh... I thought someone was having a hard time buying Powerball tickets and they need a little extra cash to buy one.

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