UPDATE: Apple Will Spend $45B With $10B Stock Repurchase And $2.65 Dividend

UPDATE, 6:40 AM: Apple says the planned $2.65-a-share outlay will make the company one of the highest dividend payers in the U.S. The dividend will cost more than $10B in the first year while Apple spends $4B in the same period repurchasing shares, execs told analysts in a conference call. All told, it expects to return $45B from its domestic cash balance to shareholders over the plan’s three years. CEO Tim Cook says he wants the effort to attract new investors — without compromising the company’s ability to grow. “Innovation is the most important objective at Apple and we will not lose sight of that,” he says. For example, he says the company can still increase its investments in R&D, acquisitions, retail stores, and its infrastructure. Cook says Apple doesn’t plan to split the stock. That would lower the price of individual shares and attract investors who can’t afford to spend $585.57, Friday’s closing price. Still, he says, “we are in a unique position at a unique point in time, so this is something we continue to look at.” Execs say that they are tapping their domestic cash holdings and grumbled  that U.S. tax laws create an “economic disincentive” to repatriate cash Apple earns overseas. Cook declined to comment on other matters but did note that Apple had “a record weekend” for initial sales of its new iPad. “We’re thrilled with it.”


This article was printed from https://deadline.com/2012/03/apple-introduces-10b-stock-repurchase-and-2-65-a-share-dividend-245914/