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Apple announces shareholder dividend payout to occur August 16, 2012

post #1 of 15
Thread Starter 
Apple has announced that its shareholders of record on August 13, 2012 will be paid a quarterly dividend of $2.65 per share on August 16, beginning the regular distribution of about $2.5 billion of the company's huge cash pile directly to its investors every three months.

Apple has not paid a dividend to its shareholders since the end of 1995, when the company began stumbling through a series of significant quarterly losses. However, after returning to regular profitability under Steve Jobs, the firm has amassed a cash pile that has now grown to $117 billion.

In March, the company's chief executive Tim Cook announced that after studying various options, Apple's board of directors had approved plans to begin paying a quarterly dividend as well as buying back $10 billion of shares.

Both actions directly benefit investors. Stock buybacks convert the company's cash into stock demand, which should help raise the the stock value as well offset new stock distributions the company has granted to its employees as part of its stock-based incentive programs.

Dividends pay cash directly to shareholders, giving them an additional form of income that does not require them to sell any of their shares. By paying a dividend to shareholders, Apple's shares are also expected to become more attractive to broader market of investors.

Three months ago, Cook stated that Apple has "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. You?ll see more of all of these in the future.

?Even with these investments," he added, "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.?

Too much cash to get rid of

Over the next three years, Apple has stated that its buyback and dividend plans will distribute $45 billion of its cash pile. Across the company's 935 million outstanding shares, the quarterly dividend will amount to nearly $2.5 billion in payments to investors each quarter.

A dividend equivalent will also be paid to holders of Apple's restricted shares, although Cook has declined to collect dividend payments for the 1.125 million shares of restricted stock he has been granted, which would otherwise be worth over $75 million.

Apple generated an additional new $7 billion in cash during the June quarter, on top of the $10 billion from the previous quarter that it had added to its existing $100 billion stockpile. This makes its current dividend payments very modest when compared to its current and future cash position. At the same time, Apple's $2.5 billion in quarterly dividend payments will make it one of the highest dividend payers in the U.S.

Cash
The growth trajectory of Apple's cash hoard, via Asymco.


Analyst Gene Munster of Piper Jaffray noted in March that, "while some investors may have wanted some more visibility into future increases in the dividend, we believe the dividend achieves the main goal of expanding AAPL's share holder base. Given Apple will still be generating significant net cash, we believe the dividend could increase by 20% after the first year."
post #2 of 15

2.65 / 600.92 =  0.00441 or 0.441% or 1.764 % per year

post #3 of 15
Quote:
Originally Posted by Just_Me View Post

2.65 / 600.92 =  0.00441 or 0.441% or 1.764 % per year

 

And they should keep it low. Dividends are for companies that are no longer interested in growth and short-term, entitled stockholders.

 

Long AAPL, baby!

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #4 of 15
Quote:
Originally Posted by SpamSandwich View Post

Long AAPL, baby!

Buy it tomorrow. Down $32 right now after hours

Life is too short to drink bad coffee.

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Life is too short to drink bad coffee.

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post #5 of 15

Put out a NEW iPhone every 6 months

 

Apple has to be analyzing this internally.

 

They must be assessing if the release of a NEW iPhone model every 6 month's may address

what Tim Cook said might be affecting iPhone sales:

 

"there is "incredible anticipation" for future products that has affected sales, though the exact impact is "difficult to sort out."

 

I know Apple knows tons better than I do but, I am just saying
 

post #6 of 15
Quote:
Originally Posted by BuffyzDead View Post

Put out a NEW iPhone every 6 months

 

Apple has to be analyzing this internally.

 

They must be assessing if the release of a NEW iPhone model every 6 month's may address

what Tim Cook said might be affecting iPhone sales:

 

"there is "incredible anticipation" for future products that has affected sales, though the exact impact is "difficult to sort out."

 

I know Apple knows tons better than I do but, I am just saying
 

I dont think a new phone every six months would be a good idea, look at android some manufacturers have put a new phone out 12 times a year and it causes customer confusion and muddies the water when it comes to good phone updates.  I really think that would be a bad idea.

post #7 of 15
Quote:
Originally Posted by mstone View Post

Buy it tomorrow. Down $32 right now after hours

 

Yes, I saw that. Last time I bought was when it hit very close to the bottom at the beginning of the recession/depression. I have enough for now. ;)

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #8 of 15
Quote:
Originally Posted by BuffyzDead View Post

Put out a NEW iPhone every 6 months

 

Apple has to be analyzing this internally.

 

They must be assessing if the release of a NEW iPhone model every 6 month's may address

what Tim Cook said might be affecting iPhone sales:

 

"there is "incredible anticipation" for future products that has affected sales, though the exact impact is "difficult to sort out."

 

I know Apple knows tons better than I do but, I am just saying
 

 

Apple tries to not put out junk products. They should only introduce them when they are ready and not be concerned about cheap Android competitors.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #9 of 15
Quote:
Originally Posted by BuffyzDead View Post

Put out a NEW iPhone every 6 months

 

Apple has to be analyzing this internally.

 

They must be assessing if the release of a NEW iPhone model every 6 month's may address

what Tim Cook said might be affecting iPhone sales:

 

"there is "incredible anticipation" for future products that has affected sales, though the exact impact is "difficult to sort out."

 

I know Apple knows tons better than I do but, I am just saying
 


It seems like they have not learned from last year's slump before the iPhone 4s release.

post #10 of 15
Quote:
Originally Posted by mstone View Post

Buy it tomorrow. Down $32 right now after hours


How low will it go this time?

post #11 of 15
Quote:
Originally Posted by peter236 View Post
It seems like they have not learned from last year's slump before the iPhone 4s release.

 

How is that at all applicable?

post #12 of 15
Quote:
Originally Posted by Tallest Skil View Post

 

How is that at all applicable?

 

To a troll, it's probably genius.

 

:D

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #13 of 15
Quote:
Originally Posted by SpamSandwich View Post

 

Dividends are for companies that are no longer interested in growth and short-term, entitled stockholders.

 

 

Dividends are for money making companies that can't leverage that extra cash into more growth. Your comment about dividends being for short-term stockholders is bizarre. Dividend paying stocks are part of a balanced long term investment strategy.

post #14 of 15
Quote:
Originally Posted by peter236 View Post


It seems like they have not learned from last year's slump before the iPhone 4s release.

Putting out new products twice as often will cause a few extra sales but long term would hurt Apple with more products to support, more frequent ramp ups and general consumer confusion.  Investors should understand that long term profits will be greater on the current cycle. 

post #15 of 15
Quote:
Originally Posted by BeltsBear View Post

Putting out new products twice as often will cause a few extra sales but long term would hurt Apple with more products to support, more frequent ramp ups and general consumer confusion.  Investors should understand that long term profits will be greater on the current cycle. 

 

I agree. Apple does not pay attention to the game playing of Wall Street and I think long term investors are quite aware of the attitude of Apple in this regard. Much of the seasonality of their product introductions has been leavened by the continuous incremental income generated by app, music, movie and e-book sales.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

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