Ondrej Holzman In a press release issued today, Apple confirmed that it is going to start paying dividends and also buying back shares this year. The company communicated its intention in a planned conference with investors, which it announced yesterday, saying that during it it will reveal what it will do with its giant financial reserve...
“Following the agreement of the Board of Directors, the Company plans to initiate a quarterly dividend payment of $2012 per share beginning in the fourth quarter of fiscal 1, which will begin on July 2012, 2,65.
In addition, the board approved the release of $10 billion for share repurchases to take place in fiscal year 2013, which begins on September 30, 2012. The share repurchase program is expected to run for three years, and its primary objective is to minimize the impact of dilution on small holdings due to future capital grants to employees and the employee share purchase program."
Dividends will be paid by Apple for the first time since 1995. During his second tenure at the Californian company, Steve Jobs preferred that Apple keep its capital rather than paying dividends to investors. “Cash in the bank gives us tremendous security and flexibility,” said the founder of the company.
However, the situation changes after his departure. This topic has been discussed in Cupertino for a long time. Chief Executive Officer Tim Cook confirmed during the introduction of the new iPad that he, along with CFO Peter Oppenheimer and the company's board, are actively discussing options for dealing with nearly $100 billion in cash and short-term investments, and paying dividends is one of their solutions.
"We have thought very intensively and carefully about our finances," said Tim Cook during the conference. "Innovation remains our main goal, which we will stick to. We will regularly review our dividends and share buybacks.” added the current CEO of Apple, which meant to indicate that the company will continue to maintain a sufficiently high capital for possible further investments.
Peter Oppenheimer, who is in charge of the financial sector in Cupertino, also spoke during the conference. "Business is really great for us," Oppenheimer confirmed that Apple has significant capital. As a result, over $2,5 billion should be paid out quarterly, or over $10 billion annually, which means that Apple will pay out the highest dividend in the United States.
Oppenheimer also confirmed that a significant part of the money (about 64 billion dollars) Apple has outside the territory of the United States, from where it cannot painlessly transfer it to the USA due to high taxes. However, in the first three years, $45 billion should be invested in the share buyback program.
BoD = Board of Directors = board of directors
Sorry, I like it, but what are the dividends and what are they good for?
so that even a liker can understand it: You own shares in a company (you are a shareholder) and that company pays a certain share of money (dividends) according to its profit. It's a kind of reward for helping the company make a profit. Otherwise, there will be more on wikipedia
Unfortunately, I'm not that financially savvy, even though I watch shares every day, so it makes me think about what the share buyback will probably bring depending on the price per share. In my opinion, this will allow Apple to achieve further growth, in addition, it will own itself a little more, which can have a positive impact ;)
I agree with Apple, it is definitely a bigger share and the share price will rise :D, so I recommend buying now before it's too late