Apple Sitting On Pile Of Cash, Will Pay Out Dividends
Subject: General Tech | March 19, 2012 - 05:44 PM | Tim Verry
Tagged: finance, computer, apple
Apple inc, the popular consumer electronics and computer company behind such brushed aluminum products as the MacBook and iPad is currently sitting on a huge pile of cash. Specifically, they have $97.6 billion dollars on hand in cash and securities (!). Allegedly, former CEO Steve Jobs maintained these liquid assets in the event that they needed to buy out a company to make any problems go away.
Apparently, current CEO Tim Cook has other ideas about what to do with the company's money, including giving a small portion of it back to shareholders in the form of dividends. In light of this announcement, the company expects their stock price a grow over the long term. After generating $31 billion in cash last year (September to September), and on track to rake in even more profits this year Tim Cook does not foresee a dividend having any negative impact on their liquid assets. The quarterly dividend in question is set to be $2.65 per share stating July 1, 2012.
Apple is further instituting a $10 billion share buyback program that is reportedly being implemented to offset shares issues to employees. The buyback program will last for three years and begins on September 30, 2012.
After the release of the
iPad 3 new iPad (sigh) and positive reaction to dividend announcement, their stock price is rising and they are still sitting on quite the pile of money even with the new dividend!