Apple is known for creating a stir among tech lovers with its iPad and iPhone product announcements. This morning, Apple (Nasdaq: AAPL) had some news that could be equally exciting for its shareholders: Apple plans to initiate both a dividend and a share repurchase program.
According to a company statement, Apple will "initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012." The move is subject to declaration by the board of directors.
In addition, Apple's board has approved a $10 billion share repurchase program for the company's Fiscal 2012 (which starts September 2012). The company plans to execute the repurchase program over three years.
Apple's CFO Peter Oppenheimer indicated that the planned divident, share repurchases, and cash used to settle vesting restricted shares should equate to about $45 billion of domestic cash expenditures during the first three years. Even with that expense, Apple CEO Tim Cook indicated that the company "can maintain a war chest for strategic opportunities and have plenty of cash to run our business."
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