Apple to spend $45B over 3 years on dividend & share repurchase program

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Comments

  • Quote:
    Originally Posted by geoffrobinson View Post


    It would be nice if they instituted a DRIP. I would like to buy each of my kids a share and teach them about investing and compounding interest/dividends. It's more fun with a stock than a savings account.



    How do stock brokers feel about DRIPs? don't they cut them off from getting commissions?
  • huntercrhuntercr Posts: 140member
    Quote:
    Originally Posted by Dick Applebaum View Post


    One of the reasons I wanted a large split was to setup investment accounts for my grandkids... at $600 a pop there wouldn't be much room for action...



    They each have saving accounts -- but that's just a lay-away for future needs (car, insurance, etc.).



    My Dad had shares of Southern Cal Edison that offered dividend reinvestment at a fixed grant price for a period of time... He was able to accumulate shares at a fraction of their price in an up market...



    That could be a great deal for AAPL investors!






    Assuming you're in the USA, if you are wanting to set something up for your grandkids, I'd suggest creating 529 plans for them instead. You'd probably have to sell some/all the Apple stock, ( as 529 plans have to be funded with cash only ) but you could fund it with the dividends if you wanted or some combination of the two.

    Hopefully your state has a good plan where you'll get a tax deduction for it as well.



    http://www.savingforcollege.com/intr...a-529-plan.php



    Regardless of what you do with the Apple stock, hopefully you'll consider the 529.



    Good luck!
  • taniatania Posts: 63member
    Quote:
    Originally Posted by williamh View Post


    The 60 refers to the question from a stockholder with 60 shares.



    ah got it. thanks.
  • digitalclipsdigitalclips Posts: 15,203member
    Quote:
    Originally Posted by tania View Post


    i'm being stupid but what's the 60 from?



    Someone asked about their 60 shares.
  • nofeernofeer Posts: 2,422member
    i understand why not a stock split



    i understand the dividend issue



    but how does the buy back help the investor, future investor and the company??
  • dick applebaumdick applebaum Posts: 11,306member
    Quote:
    Originally Posted by huntercr View Post


    Assuming you're in the USA, if you are wanting to set something up for your grandkids, I'd suggest creating 529 plans for them instead. You'd probably have to sell some/all the Apple stock, ( as 529 plans have to be funded with cash only ) but you could fund it with the dividends if you wanted or some combination of the two.

    Hopefully your state has a good plan where you'll get a tax deduction for it as well.



    http://www.savingforcollege.com/intr...a-529-plan.php



    Regardless of what you do with the Apple stock, hopefully you'll consider the 529.



    Good luck!



    Thanks! I'll look into it!
  • shaun, ukshaun, uk Posts: 1,050member
    Quote:
    Originally Posted by anantksundaram View Post


    One thing I am super happy about: they didn't announce some large acquisition.



    That would have been a terrible move.



    Why FFS ?



    Most Apple shares are held by large banks, investment houses, hedge funds, etc. All those people who caused the worldwide recession. All they are doing is making the rich even richer.



    Way to go Apple, Steve is probably spinning in his grave as we speak.
  • bwikbwik Posts: 534member
    A buyback at $600 a share for AAPL would be totally asinine. The buyback, if ever, should have occurred 4-5 years ago. The power of it would have been multiplied. To do it now is pathetic.
  • melgrossmelgross Posts: 28,597member, moderator
    Oops! Looks like the discussion has moved here. Anyway, to quote my last post In the other thread:



    The buyback portion of this isn't as bad as I thought it could be. They ate mostly accounting for share growth due to compensation. So it's not an unneeded attempt to increase equity per share. It's an attempt to maintain equity per share.
  • dick applebaumdick applebaum Posts: 11,306member
    Here we go!
  • melgrossmelgross Posts: 28,597member, moderator
    Quote:
    Originally Posted by bwik View Post


    A buyback at $600 a share for AAPL would be totally asinine. The buyback, if ever, should have occurred 4-5 years ago. The power of it would have been multiplied. To do it now is pathetic.



    If you listened to the call, you would see that they did it simply to account for the share growth over the next few years from employee compensation.
  • dick applebaumdick applebaum Posts: 11,306member
    So far, not much of a blip... maybe that's what Apple was after?
  • melgrossmelgross Posts: 28,597member, moderator
    Opened up about $9.50, but that is dropping.
  • gotwakegotwake Posts: 111member
    Quote:
    Originally Posted by NOFEER View Post


    i understand why not a stock split



    i understand the dividend issue



    but how does the buy back help the investor, future investor and the company??



    It's simply supply/demand. Reducing the available shares increases the EPS (earnings per share) and reduces the multiple the stock trades at PE (price to earnings) making the stock a better value. It guarantees nothing though, just look at msft. They have spent a fortune on stock buybacks and the stock has done nothing.
  • dick applebaumdick applebaum Posts: 11,306member
    Quote:
    Originally Posted by melgross View Post


    If you listened to the call, you would see that they did it simply to account for the share growth over the next few years from employee compensation.



    Yeah, all of this with domestic cash... waiting for a better tax environment to repatriate foreign cash...



    I just love the way Peter and Tim parry questions that shouldn't be asked
  • melgrossmelgross Posts: 28,597member, moderator
    Very volatile. But it's been volatile for several days.
  • gotwakegotwake Posts: 111member
    Quote:
    Originally Posted by bwik View Post


    A buyback at $600 a share for AAPL would be totally asinine. The buyback, if ever, should have occurred 4-5 years ago. The power of it would have been multiplied. To do it now is pathetic.



    No it's not. They have to do it with the cash available in the US unless they want to pay taxes on the cash over seas. They have to account for how much the dividend and buyback will cost them along with any US investments.
  • kdmeisterkdmeister Posts: 45member
    I would rather see Apple stick to their guns despite all the pressure from the investor community. I'd rather see Apple shares go up because of organic growth and not because of dividends. Buybacks are the biggest waste of money - the money will go into thin air when the stock price comes down at some point. I'd rather see Apple end world hunger than pay people who already have a lot of cash to spare. After all they have money to spend on Apple products and Apple shares.
  • melgrossmelgross Posts: 28,597member, moderator
    Quote:
    Originally Posted by Dick Applebaum View Post


    Yeah, all of this with domestic cash... waiting for a better tax environment to repatriate foreign cash...



    I just love the way Peter and Tim parry questions that shouldn't be asked



    They made the point, several times that repatriation would be too expensive, and pointed the finger at the government for that. Everything they're doing is from domestic cash and holdings.
  • malaxmalax Posts: 1,598member
    Quote:
    Originally Posted by melgross View Post


    If you listened to the call, you would see that they did it simply to account for the share growth over the next few years from employee compensation.



    Right. Apple is on the hook to give away lots of (well earned) shares of AAPL to employees and executives. If they didn't do a stock buy-back these would be created out of thin air (essentially printing money). With a buy-back they are essentially buying the shares they are giving away from sellers rather than taking them from all investors (through dilution).
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