Apple has announced its intentions for its $100 billion cash reserves with the Cupertino based company revealing it is to invest $10 billion it repurchasing its own shares.
Making the announcement in a conference call today Apple CEO Tim Cook confirmed the iPad and iPhone maker would be implementing a stock repurchasing programme as well as introducing a quarterly dividend for investors.
“We have 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,” said Tim Cook, Apple’s CEO.
“Even with these investments, 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 programme,” he added.
Kicking off on September 30th of this year, the shares repurchasing initiative will take place over three years with Apple stating it intends to neutralise the impact of stock dilution. The quarterly dividends scheme will be introduced during the fourth quarter with $2.65 per share to be paid out.
“Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilising approximately $45 billion of domestic cash in the first three years of our programmes,” said Peter Oppenheimer, Apple’s CFO. “We are extremely confident in our future and see tremendous opportunities ahead.”
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