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02-14-2013, 12:33 AM #1
Apple Making $2.5 Billion Dividend Payment to Shareholders Today
Last August, Apple released $2.5 billion to shareholders in the company's first quarterly dividend payment in almost two decades. Five months previously, Tim Cook formally unveiled the dividend program, which is all part of a massive share buyback and dividend plan that will claim $45 billion from Apple's capital reserves over the next three years.
The dividend payouts continue today as Apple pays shareholders another $2.5 billion at $2.65 per share (spanning 939 million outstanding shares of AAPL).
Incredibly, although Apple has already been paying out dividends for three consecutive quarters, the program hasn't made a dent in the company's massive stockpiles of cash. The simple math of it shows that Apple is still raking in cash faster than it can possibly dish out.
According to Piper Jaffray analyst Gene Munster, Apple may announce an increase to the dividend program when Apple reports earnings for the March 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..." Tim Cook said last March. "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.”
02-14-2013, 06:00 AM #2
Mo money...Mo problems.
Should also be noted...
Mo money...Mo stock dividend payouts to outstanding shareholders...El Zurdo
02-14-2013, 06:32 AM #3
But with the stock price of AAPL ($467), about a $1000 invested will buy you 2 shares, and you will get about $5 dividend payout.
Cash dividends will also result in a lowering of the stock price too, since you've essentially reduced your company's assets. And in this case, $2.5 billion.
But I guess, money is money.
02-14-2013, 07:00 AM #4
02-14-2013, 08:10 AM #5
That is probably interest on the interest.
02-14-2013, 09:15 AM #6
I absolutely love the idea of Apple spending 45 Billion to regain nearly 10% (96 Million) of their traded stock back. Investors say it will get to $1000 and then knock their estimate to $450 and act like they had no part in any of it despite selling at the top. Too much market manipulation and the law suit seeking higher pay-outs if proof it's the right move.
Apple would be a worse off company if they didn't have so much cash on hand and had to take out loans to but new assets. If Apple had to borrow money to buy Siri it would have cost more simply based on interest costs. They would have to fight off other buyers and pay a higher price because everyone would know what they are doing since they have to ask a bank for permission first.
Yes, stockholders own the company. You have to ask yourself how much can you trust an owner who can sellout huge stakes in the company nearly immediately. You can't because their investment is not in the company but in how much they can make. No great company will ever be build by people who only care about what they can take out.
02-14-2013, 11:35 AM #7
Last edited by fleurya; 02-14-2013 at 11:37 AM.