Apple Announces Plans to Initiate Dividend and Share Repurchase Program

apple has issued press release indicating plans initiate dividend , share repurchase program commencing later year.

quote

subject declaration board of directors, company plans initiate quarterly dividend of $2.65 per share sometime in fourth quarter of fiscal 2012, begins on july 1, 2012.

additionally, company's board of directors has authorized $10 billion share repurchase program commencing in company's fiscal 2013, begins on september 30, 2012. repurchase program expected executed on 3 years, primary objective of neutralizing impact of dilution future employee equity grants , employee stock purchase programs.

"we have used of our cash make great investments in our business through increased research , development, acquisitions, new retail store openings, strategic prepayments , capital expenditures in our supply chain, , building out our infrastructure. you'll see more of of these in future," said tim cook, apple's ceo. "even these investments, can maintain war chest strategic opportunities , have plenty of cash run our business. going initiate dividend , share repurchase program."

"combining dividends, share repurchases, , cash used net-share-settle vesting rsus, anticipate utilizing approximately $45 billion of domestic cash in first 3 years of our programs," said peter oppenheimer, apple's cfo. "we extremely confident in our future , see tremendous opportunities ahead."

click expand...

apple expects spend $45 billion on 3 years program..

apple providing live streaming of conference call discuss plans beginning @ 6:00 a.m. pdt on monday, march 19, 2012 @ www.apple.com/quicktime/qtv/call31912. we'll provide ongoing updates article conference call takes place.

conference call updates

- iphone. handsets smartphones. enormous potential
- amazing start ipad. launch of new ipad, things getting better. believe tablet market exceed pc market eventually.
- innovated @ incredible pace. app ecosystem, icloud, siri.
- investing in distribution around world, , direct enterprise sales force.
- substantial amounts of cash, both domestically , abroad.
- used r&d, acquisitions, strategic pre-payments, retail, , building out of infrastructure. see more of these in future.
- still have plenty of cash run our business.
- initiate dividend , share repurchase. thought our cash balance.
- innovation our important objective.
- decision not close doors us.
- details dividend , share repurchase program described above.
- continue assess , review program regularly.

peter oppenheimer

- apple's cash has increased right reasons , we've been disciplined use of our cash.
- $98 billion in cash in dec quarter. ~$64 billion outside u.s.
- in thinking our cash
- want maintain flexibility take advantage of investment opportunities
- 1. current income our longterm shareholders
- 2. increase attractiveness broader investment base
- 3. preserve value employee equity dilution.
- repurchase of shares offset issuing of employee equity grants.
- $45 billion in domestic cash in first 3 years of program
- remain confident future of our business.

q&a

q: growth of dividend expected?
a: in consultation board, review our dividend payments regularly.

q: last quarter talked many more things come, can reiterate more confidence of product pipeline.
a: love announce new products, don't in conference calls. growth speaks , extremely confident in our future pipeline. our customers incredibly pleased what's coming out.

q: did board discuss how put use international cash?
a: we've got plenty of u.s. cash invest , pay dividend , initiate stock buyback. big tax burden repatriate international cash , we've expressed disincentive congress.

q: methodology on stock splits?
a: have looked at, , current information have suggest there little support helps stock. however, in unique position , @ unique point in time , continue at. , if reach decision in best interest of apple , shareholders, it.

q: press release on how new ipad did?
a: record weekend. thrilled it, not time during call.

call over.

article link: apple announces plans initiate dividend , share repurchase program

 

not surprising, kind of dull.

phazer

 

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