Buy Apple, But Not For The Dividend And Buyback
By Bill Maurer: Late Sunday night, we found out that Apple (AAPL) was planning a Monday morning conference call to discuss its use of its large cash hoard going forward. In my prediction article, I stated that I believed a $2.50 quarterly dividend was coming, and that Apple would only start a buyback program if they tapped into their money held outside of the United States. That money represents about two-thirds of the more than $100 billion in cash and estimates we presume that they currently have on their balance sheet.On Monday morning, Apple announced a dividend and a buyback. Here are the highlights, extracted from that press release:
- The Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.
- Additionally, the Company's Board of Directors has authorized a $10 billion share repurchase program commencing in
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