Apple Caps Buybacks at $90 Billion
Apart from its blockbuster earnings report, Apple made equally monumental headlines with the extension of its capital return program.
Earlier today, Apple not only announced a seven-for-one stock split, the company also upped share buybacks, now capped at $90 billion.
Apple says it expects to utilize a total of over $130 billion of cash under the expanded program by the end of calendar 2015.
"As part of the program," Apple explains, "the Board has increased its share repurchase authorization to $90 billion from the $60 billion level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units."
As we understand it, the Board also approved an increase to the company’s quarterly dividend of approximately 8 percent and has declared a dividend of $3.29 per common share. That's payable next month, May 15, 2014 to shareholders of record as of the close of business on May 12, 2014.
Lastly, Apple says it plans to increase its dividend on an annual basis. With annual payments of $11 billion, Apple is now "among the largest dividend payers in the world."
“We are announcing a significant increase to our capital return program,” said Tim Cook, Apple’s CEO, in a statement provided to press. “We’re confident in Apple’s future and see tremendous value in Apple’s stock, so we’re continuing to allocate the majority of our program to share repurchases. We’re also happy to be increasing our dividend for the second time in less than two years.”