New York: Cash-rich iPad maker Apple announced a USD 2.65 per share quarterly dividend and a USD 10 billion share buyback plan as part of its broad plans on how it intends to use nearly USD 100 billion reserves.
The world's most valuable company had last offered a dividend in 1995.
Apple said it will initiate a quarterly dividend of USD 2.65 per share in the fourth quarter of its fiscal 2012 which begins on July 1, 2012.
Announcing its plans to reward shareholders with the dividend, the California-based company said it wants to provide a current income to its long-term shareholders and increase attractiveness of Apple to a wider investor base.
Apple Inc expects its first year annual dividend payment to be over USD 10 billion.
The dividend "will provide a current income to our shareholders and we believe it will broaden Apple's investor base by attracting new investors who do not currently own Apple stock," Apple's Chief Executive Officer Tim Cook said in a conference call.
Apple will declare the dividend concurrent with the quarterly financial release in July.
The company board has authorised a USD 10 billion share repurchase programme commencing in its fiscal 2013 which begins on September 30, 2012.
The repurchase programme is expected to be executed over three years, with the primary objective of neutralising the impact of dilution from future employee equity grants and employee stock purchase programmes.
At the end of December 2011, Apple had a cash reserve of 98 billion dollars, of which 64 billion dollars was outside the US.
Its shares were up nearly 1. 17 per cent at USD 592.70 in early morning trading. Apple boasts of a market capitalisation of about USD 545 billion.
Comments
0 comment