Apple To Pay Dividend And Repurchase Shares

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It looks like Tim Cook is breaking tradition with his predecessor by implementing a regular quarterly dividend and buying back $10B in company stock. :cool:

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.
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With the amount of cash that Apple's accumulates every quarter, this was pretty much a no brainer. Not to mention the fact that repatriating monies overseas would likely be costlier than paying out a dividend and repurchasing shares.
 
Let's hope that he differs in other ways from his predecessor as well.

Apple's steady march towards elimination of choice and walled gardens has been a very disturbing trend for some time now.
 
So I'm not an expert on this stuff, but from what I understand they are going to reclaim their stock from the public to try to limit the amount of available public stock (which benefits remaining stockholders when the value increases does it not?) and also reduce the amount of "physical cash" by placing the added value in assets (stocks)? Guess one would also question how much this benefits the new CEO's end of year bonus (appease the stockholders)...

If I'm understanding this correctly, and please correct me if I am wrong, all I can say is meh. And here I was thinking they were gonna donate some to charity, or do anything other than continue to line their own pockets when I read that first announcement about an announcement.
 
Not really.

Reclaiming stock is done purely for "self control" : any BIG decisions made by apple has to be accepted by a minimum of X% of the stockholders.
Having 10% (probably even more than that) of your own stock will easily make/break a deal.

Yahoo's "NO" to Microsoft was a perfect example where some stockholders saying "NO" and killing the deal.

Going "public" gives you access to millions or billions of cash to finance your project, at the cost of self control.
Buying back your shares helps regaining some control.
 
dastral said:
Going "public" gives you access to millions or billions of cash to finance your project, at the cost of self control.
Buying back your shares helps regaining some control.
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So this is really about Apple gain more "Control". Why am I not suprised :)
 
Zarathustra[H];1038509142 said:
Let's hope that he differs in other ways from his predecessor as well.

Apple's steady march towards elimination of choice and walled gardens has been a very disturbing trend for some time now.
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It's their bread and butter. Can you imagine having Apple licensed OSes on various hardware? Controlling both means they're not a Microsoft and can charge whatever the hell they want because it's only available from them. Smart business? yes. Shitty for advancement? absolutely, particularly since they're just buying all of their hardware from other company's and then locking it down. They are pushing openCL which is good news for everyone :)

It does seem like a smart move to buy back their stock, though. With a good grip on shares they can decide to take on more risky endeavors without as much outcry from stockholders.
 
wasteomind said:
If I'm understanding this correctly, and please correct me if I am wrong, all I can say is meh. And here I was thinking they were gonna donate some to charity, or do anything other than continue to line their own pockets when I read that first announcement about an announcement.
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If they gave tens of billions to charity or something, their stock holders would have a legitimate reason to sue them.
 
I think it would make more sense to think of the $10B buyback as just the first step of Apple's future plans...

Otherwise it doesn't make much sense to do a buyback when the company shares are at sky high prices.

Therefore I'd guess Apple expects something to happen...
 
$2.65 is crap for a dividend when your stock is $600/share...much better deals out there.
 
This is more of a gesture than anything else. The dividend itself is very modest. At the rate Apple is accumulating $, They are still going to have a huge war chest, if anything it will remain close to what it is currently, just maybe growing at a slower rate. Just for reference, Apple's cash [H]oard is larger than Amazon's market cap!

The buyback signals #1, Apple's management wants a larger controlling interest in their own firm, and #2, management believe the stock price is currently undervalued.

Its good to be the king.
 
fuck. investors making a killing.

since they will be buying back stock, that means stock price will continue to rise?
 
dr.kevin said:
fuck. investors making a killing.

since they will be buying back stock, that means stock price will continue to rise?
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It will help. But the stock should keep rising because Apple keeps establishing its dominance in the tablet market.
 
wasteomind said:
If I'm understanding this correctly, and please correct me if I am wrong, all I can say is meh. And here I was thinking they were gonna donate some to charity, or do anything other than continue to line their own pockets when I read that first announcement about an announcement.
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I seem to hear this sort of thinking from liberals and young kids know. Some people seem to think that if a person and/or company makes tons of money then part of that should automatically be donated.


Donation:
Noun:

1.Something that is given to a charity, esp. a sum of money.
2.The action of donating something.


Confiscate:
Verb:

1.Take or seize (someone's property) with authority.
2.Take (a possession, esp. land) as a penalty and give it to the public treasury



See the difference folks? If you think that eventually like minded people like the poster above won't become the majority and make laws against wealth, think again.
 
Most companies buy their own stock when it is at the bottom to regain more control and spike investor interest - not when it is at an all time high. This is nuts. $10B would buy less than 2% of their company.

The only thing I can think of is management is trying to fuel the flames of hype and make money off the short-sales.

Their stock will crash. For comparison, they are valued at over twice as much as Microsoft and produce 3/4 the annual profit. Over 40% of Apple's revenue comes from iPhones and they are facing stiffer competition against Android manufacturers. Over 25% comes from iPad sales and, lets be honest, that market will quickly reach a point of saturation. That mainly leaves laptop sales, which will lose marketshare as the shine wears off the apple as their other two markets decline in popularity.
v6maro said:
$2.65 is crap for a dividend when your stock is $600/share...much better deals out there.
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Less than 0.5%. 6% would be good. 12% would be great.
 
fdiaz78 said:
See the difference folks? If you think that eventually like minded people like the poster above won't become the majority and make laws against wealth, think again.
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And people like this poster are why America ranks somewhere near 50th place in median age. You'd think with all our money that we'd be at least in the top 10.

Protip: corporations make money because society set up a system that allows them to. There's nothing wrong with taxes; the most successful corporations, by definition, have benefited the most from the public. They also owe the greatest debt to the public.
 
sleepeeg3 said:
Most companies buy their own stock when it is at the bottom to regain more control and spike investor interest - not when it is at an all time high.

Their stock will crash. For comparison, they are valued at over twice as much as Microsoft and produce 3/4 the annual profit.
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Crash??? Umm, no.

Apple's earnings per share = 35+. MSFT's eps = 2.8

Companies topically buy back stock when management feels said stock is undervalued. Cooke & Co. clearly believe Apple's stock price has plenty of room to run.

sleepeeg3 said:
Over 40% of Apple's revenue comes from iPhones and they are facing stiffer competition against Android manufacturers. Over 25% comes from iPad sales and, lets be honest, that market will quickly reach a point of saturation. That mainly leaves laptop sales, which will lose marketshare as the shine wears off the apple as their other two markets decline in popularity.
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As far as the US market is concerned, the iPhone is actually gaining marketshare. That is remarkable, considering the plethora of Android phones out yet there.

Yeah, globally the picture is a bit different. However, Apple still ships more phones than any other company in the world. But that doesn't begin to tell the story. As far as revenue is concerned, the Apple absolutely destroys all other handset makers. The picture only gets worse for Android if revenue from app stores is compared.

Crash, seriously???
 
fattypants said:
And people like this poster are why America ranks somewhere near 50th place in median age. You'd think with all our money that we'd be at least in the top 10.

Protip: corporations make money because society set up a system that allows them to. There's nothing wrong with taxes; the most successful corporations, by definition, have benefited the most from the public. They also owe the greatest debt to the public.
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What are you babbling about? This sounds like Marxist drivel. So the government "allows" them to? Does the government allow you to make a living?

Fact is most corporations (except GE) pay more taxes than you will ever pay in several lifetimes and produce more jobs than you will ever create. Apple or any company does not owe you or I a dime other than their tax bill just like you and I.
 
fdiaz78 said:
Barely 2% is hardly a "killing" :)
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Aluisious said:
How about 50% capital gains in a couple months?

I'm amazed that the biggest stock in the world popped that much that fast :eek:
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yeah, i wasn't talking about the 2%.

I was going to buy appl last thxgiving. Look where it is now. oh well, too late.

i hope there's a big sell off so i can buy some for under 600.


is anyone keeping track of ipad sales? apple sold more ipads in 3 days than all other tablets combined in a whole year, right?
 
BTW I actually enjoy Apple products but like most things in life their will be a point where people won't form lines to buy another apple product.
 
I think it was one of Job's weird ideas that put this on the to do list. He wanted to wage nuclear war against Android, they should be able to afford it just fine after this.

Meanwhile, AMD gives to charity..
 
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