Apple has ‘record weekend’ of new iPad sales and Apple announces $10b share buyback starting in fiscal 2013, $2.65 dividend for Q4
Wow great numbers from Apple! They’re rolling in the cash!
Ahead of a conference call this morning, Apple has announced a pair of initiatives for its massive stockpile of cash totaling approximately $100 billion: a stock buyback beginning in fiscal 2013 (which begins on September 30th of this year) along with a per-share dividend of $2.65 to start sometime in fiscal Q4, which starts on July 1st. The buyback is expected to run over three years.
CEO Tim Cook notes that the company is already investing heavily in the fundamentals, saying:
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. 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.
All told, Apple expects to spend $45 billion on the programs — a big number, yes, but it’s put in perspective when you consider that it made over $13 billion in profit in the last quarter alone. Notably, CFO Peter Oppenheimer said that Cook has requested that none of his unvested RSUs (restricted stock units) participate in the dividend payout. He also said that the total payout was influenced partially by Apple’s desire to avoid the tax issues involved with repatriating the cash that it holds internationally.