Apple Announces $11 Dividend And Share Buyback

Business Insider ^ | 03/19/2012 | Jay Yarrow

[SeekAndFind]

Apple announced a quarterly dividend of $2.65 a share and authorized a share buyback plan this morning.

According to the release, it anticipates spending about $45 billion in cash over the first three years of the dividend and buyback plan. 

The buyback authorization is worth $10 billion and starts in fiscal 2013, which starts after September 30, 2012. (Important note: a buyback authorization doesn't mean Apple is going to rush out and buy stock, it just means it could buy stock.)

The dividend starts in fiscal Q4, which is after July 1, 2012.

The $45 billion Apple anticipates spending will be less than a third of the cash it will bring in over the next three years. (We anticipate it generating ~$150 billion in cash in the next three years.)

Apple shares have been halted, and will start trading again at 8:50 eastern.

Here's the release:

Apple® today announced plans to initiate a dividend and share repurchase program commencing later this year.

Subject to declaration by the Board of Directors, the Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.

Additionally, the Company’s Board of Directors has authorized a $10 billion share repurchase program commencing in the Company’s fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.

[SeekAndFind]

Related story:

Apple: We Sold A ‘Record’ Number Of iPads This Weekend

Read more: http://www.businessinsider.com/apple-we-sold-a-record-number-of-ipads-this-weekend-2012-3#ixzz1pZWzxo4w

[Hodar]

I guess that if you build a better mouse-trap; the public really will beat a path to your door.

[tcrlaf]

Apple is the ultimate business success story.

They make a product people WANT to buy, and are willing to pay a premium for, manufactured at the cheapest possible price. This is how you create wealth.

That product is extremely popular among the media, who constantly hype it, creating a “must-have” impression. It matters little to them that said product is made-in-China by almost slave workers, they just gotta have it, because it’s “Popular!”.

Apple is the ultimate hypocrisy of the left.

[HangnJudge]

AAPL

up at this moment,a lot
596.36
Change 10.79
Change 1.84%

[Tucsonican]

Apple is the ultimate business success story.
They make a product people WANT to buy, and are willing to pay a premium for, manufactured at the cheapest possible price. This is how you create wealth.
That product is extremely popular among the media, who constantly hype it, creating a “must-have” impression. It matters little to them that said product is made-in-China by almost slave workers, they just gotta have it, because it’s “Popular!”.
Apple is the ultimate hypocrisy of the left.

You lost me on this. Are you suggesting that Apple is a fine example of Capitalism at work or that it is a tool of the left or both?

Apple is making money hand over fist because people want their product. They provide a product which exceeds the perceived benefits of products offered by their competitors and do so at a price which their customers find to be fair and reasonable. I don't really see how any of that is left wing.

[tcrlaf]

The left embraces Apple, while at the same time crying about “EVIL CAPITALISM!”, “OUTSOURCING!”, etc. They have to have it, because it’s “Cool”. They don’t want to be seen as one of “Those People”.

The biggest laugh I had in years was the moron at ‘Occupy Fremont Street!’, in Las Vegas, that was taking photos of himself with an iPhone, while carrying a “CAPITALISM IS EVIL!” sign. (Wearing Nike’s, and a Diesel desinger shirt, too!)

How do you get through to supposedly “SMART!” people, that are that f***ing dumb?

[Freddd]

And in on with congress...

That’s all I needed to know.

[SamAdams76]

I think one of the keys to Apple's success is that they developer consumer products that people want to buy and they sell those products for considerably more than it costs to produce them. I believe that is what people are talking about when they mention about the "profit margin."

I also notice that Apple products are pretty much the same price no matter where you go. That is to say, if a certain version of the iPad retails in the Apple store for $499, that is the price you are going to pay even if you go to Best Buy or out on Amazon.com.

For some reason, I can get a good deal on the iTunes Gift Cards if I go to the Sam's Club - where I can buy a multi-pack of 4 $25 cards for just $82.64. I always wondered about that. I'm thinking that somebody in charge of prices at the Sam's Club did the math wrong when they tallied up the total of the four cards and I've been taking advantage of it - while it lasts.

[bucketdirectly]

This was bound to happen

[mewzilla]

Is that $11 a dividend...or a bribe?!

FWIW, that dividend makes me even more leery on AAPL.

[SamAdams76]

Only a matter of time.