Apple spends some of its $98B cash hoard
Computer maker to pay $2.65 a share quarterly and spend $10B buying up shares
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.