Hot off of this morning's conference call, it looks like they're gonna kick some of that cash mountain back to shareholders. Thoughts? What will aapl finish at today (currently up ~2.2%)? Are you long on aapl / will it reach $1,000?
From Chris Velazco of TechCrunch.com:
...Tim Cook notes that the company will occasionally revisit their dividend and stock buyback plans.
Apple plans to pay shareholders a dividend of $2.65 per share sometime in Q4 2012, which for Apple begins this July. In case you were wondering, the last time Apple paid dividends was in 1995 — shareholders got a whopping $0.12 per share.
On top of that, Apple’s Board of Directors gave their blessing for the company to buy back $10 billion of stock over the next three years. The repurchase program is slated to begin in September 2012, and is meant to help neutralize “the impact of dilution from future employee equity grants and employee stock purchase programs.”
Sourced via TechCrunch
Somebody let them know if they're having trouble getting rid of it all that I'd be more than happy to take a few million off their hands
so can we assume that they've run out of ideas for how to use their capital profitably?
My thoughts exactly. I doubt Steve would have taken this action.
No.. You can assume that it's not possible to use over 100B in any investment or growth plans. The amount of cash Apple has far exceeds operating expenses, strategic acquisitions or just about anything they can do with it. This isn't your classic case of a dividend because management can't figure out what to do with the excess cash, it's a dividend because there is so much excess cash it's not possible to use it effectively.
That's what happens when you lose Steve.
Looks like TechCrunch is on Apple's nuts this morning (see also: every morning):
http://techcrunch.com/2012/03/19/tim-cook-on-the-new-ipads-first-weeken…
http://techcrunch.com/2012/03/19/apple-cash/
lmao, to be fair, weren't they the first ones to really bust their balls for being shitty towards teh environment?
so aapl price will tumble soon?
I wish they had split it
Agree that might have been cool, but that's really not a cash issue.
Apple is ~2% today. I have no idea where you saw that it was up 13%.
probably meant $13...
my fault, typo when added to homepage, meant 13 points
ahhh, Andy edited my content to make it front page worthy. I didn't write the bold part asking for WSO thoughts. Blame Andy! haha.
They generate ~$40 in free cash flow per share (annually), this dividend isn't even going to decrease their cash. Outside of the $10B share repurchase their cash balance will still be rising every quarter.
I just took a real quick glance at some of their ratios. I was very surprised to see that they only spend 2% of Revenues on R&D. I would have guessed that would be a lot higher. I realize that their revenues have skyrocketed, but I never thought I'd see an innovative tech company spend 2% of revenue on R&D.
There are apple lovers that will buy anything apple sells, apple might buy urine and sell it as energy drinks called iP.
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