Apple Announces Plans to Initiate Dividend and Share Repurchase Program
Yesterday Apple hold a conference call where the company announced its plans to initiate quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.
Additionally, Apple said that it authorized a $10 billion share repurchase program that 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.
“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. You’ll see more of all of these in the future,” said Tim Cook, Apple’s CEO. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”
“We are extremely confident in our future and see tremendous opportunities ahead,” said Peter Oppenheimer, Apple’s CFO.
Apple expects to spend $45 billion over three years with the program.
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