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Apple's third dividend payout expected February 15

updated 12:20 am EST, Thu February 14, 2013

$2.5 billion quarterly effort nears top of US payouts

Apple's third dividend is expected to be paid on February 15. The company will dole out $2.65 to 939 million shares for a total output of $2.5 billion dollars, with shareholders of record on February 11 receiving the payments. Despite the lawsuit by Greenlight Capital calling for the company to increase dividend payouts, Apple's $10 billion payout per year puts it in the top five percent of dividend allotments in the US.

In conjunction with the dividend payout, Apple is in the midst of a stock buyback program, intended to reclaim shares it has awarded to board members and other executives of the company. As recently as 2010, Steve Jobs dismissed several suggestions regarding what the company should do with its growing stockpile of cash, saying that he believed that a dividend program would have no positive effect on the stock price. Apple paid no dividends for over 17 years.

CEO Tim Cook implemented the buyback program at the same time as the dividend payout declaration. He said during the March 2012 conference call discussing corporate earnings that the company could make its normal investments and offer the dividend, saying "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."

At the time of the dividend announcement, Apple stock was worth around $550 per share. The stock broke the $700 mark in September, but has since fallen to around $465, possibly proving Jobs' point about the dividend effort not helping the stock price of the company. Apple's annual shareholder meeting is scheduled for February 27, and the issue of the recent drop in stock value is likely to be a hot topic.



By Electronista Staff
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Comments

  1. elroth

    Junior Member

    Joined: 07-05-06

    ummm...

    your comment

  1. elroth

    Junior Member

    Joined: 07-05-06

    ummm...

    your comment

  1. iphonerulez

    Dedicated MacNNer

    Joined: 11-28-08

    Steve was right...

    A dividend has done nothing good for Apple shares. I think that even increasing the dividend will be a waste of time in order to bring in more investors or boost the share price. As near as I can tell, Wall Street has already given up on Apple when it comes to potential growth a long time ago. Just take one quick look at that rapidly shrinking P/E and you know they're already written Apple off. Apple should not give in to any hedge funds. They'll just take the money they get and load up on Netflix, Amazon, Google and LinkedIn and make even more money. Because Wall Street has already given up on Apple's growth, Tim Cook should argue that Apple needs every penny of the cash reserve for Apple to stay viable. Bargaining with hedge funds is like bargaining with the devil. There's no way you can beat him and he'll always just take your soul. Eff Einhorn and his mob-mentality cronies.

  1. bobolicious

    Dedicated MacNNer

    Joined: 08-15-02

    How about a new tower

    option for thunderbolt connectivity, or offering/developing rosetta for legacy compatibility - allowing the 1/3 or so of existing snow users (who choose not to spend the $20 for mt lion) to more easily invest / upgrade to new hardware - there might be some pretty obvious uses for the hoarding cashpile from my perspective...?

  1. FireWire

    Mac Elite

    Joined: 10-03-99

    they should stop

    paying dividends.. the investors weren't there when they were needed the most, when Apple had to sell its soul to MS for a mere 150 milliions.. they don't deserve any of it, and Apple doesn't need them. Keep your 100 B$ cash reserve instead of dilapidating it...

  1. andrewbw

    Fresh-Faced Recruit

    Joined: 01-31-01

    LOL

    That may be the single most hilarious misuse of the word "dilapidating" I've ever seen.

  1. FireWire

    Mac Elite

    Joined: 10-03-99

    oops

    sorry, in french "dilapider" means spend wrongly, waste..

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Originally Posted by FireWireView Post

    paying dividends.. the investors weren't there when they were needed the most, when Apple had to sell its soul to MS for a mere 150 milliions...



    Those 150 million were largely symbolic. Apple didn't need them IIRC.

    The MUCH more important aspect of that deal was the commitment to keeping Microsoft Office available for the Mac platform for at least 5 years.

  1. FireWire

    Mac Elite

    Joined: 10-03-99

    can't say for sure

    I can't say for sure. The way I understood it when it happened was that Apple was strapped for cash, having cancelled many projects and was referenced widely as the "beleaguered company". As far as I remember, they needed the cash. They even had to forfeit their right to sue MS for all their patents violations, and go as far as to put Internet Explorer on the desktop as the default browser.

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    The lost patent lawsuit happened almost ten years earlier.

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