Apple to Buy Back $10B in Stock - InformationWeek
IoT
IoT
Infrastructure // PC & Servers
News
3/19/2012
09:42 AM
50%
50%
RELATED EVENTS
Building Security for the IoT
Nov 09, 2017
In this webcast, experts discuss the most effective approaches to securing Internet-enabled system ...Read More>>

Apple to Buy Back $10B in Stock

Apple will buy back approximately $10 billion of its own shares over the next three years, beginning this October.

Apple announced Sunday that it would make an announcement Monday morning that outlined a plan for its $100 billion cash hoard. Many shareholders were hoping for some kind of dividend or buyback, though few thought it realistic. It's been 17 years since Apple's last dividend.

Shareholders, however, got their wish.

Monday Apple CEO Tim Cook announced a $2.65 per share quarterly dividend and stock buyback beginning in Apple's fourth quarter. "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," said Cook. "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."

Apple CFO Peter Oppenheimer said the company is expecting to use $45 billion of its domestic cash in the first three years of the program. Apple's focus will be to maintain flexibility as it takes advantage of additional investment opportunities, as well as to increase attractiveness to a broader investment base, preserve value from employee equity dilution, and repurchase shares to offset the issuing of employee equity grants, he said.


Shares of Apple stock were up 14.05 or 2.4%, before trading was halted while the announcement was made. At the opening bell Apple was at 598.37, up 12.80 or 2.18%. As midday passed, the stock again flirted with the 600 mark, up 12.73 or 2.17% to 598.30 as of 1:36 p.m. EDT.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll