This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple Cash Announcement: Live Blog

Stocks in this article: AAPL

Updated with news from Apple's conference call.

CUPERTINO, Calif. ( TheStreet) -- Apple (AAPL) overhauled its cash strategy before the market open on Monday, announcing a dividend and share-repurchase plan.

The tech giant aims to pay a quarterly dividend of $2.65 per share, sometime during its fiscal fourth quarter, which begins on July 1, 2012. The Apple board also authorized a $10 billion share-repurchase program, starting in the company's fiscal 2013, which begins on Sep. 30, 2012.

"This will broaden Apple's investor base by attracting more investors who do not currently hold Apple's stock," explained Apple CEO Tim Cook, during a conference call before the market open on Monday. Apple, he added, will periodically review its dividend and repurchase plans.

The iPhone maker stopped paying a dividend in 1995, but Cook hinted that Apple may reverse its stance after assuming the CEO role last year.

Apple, which recently unveiled its new iPad, had a cash hoard of almost $98 billion at the end of its recent fiscal first quarter. Some $64 billion of the company's cash is offshore, according to Apple.

In a recent poll conducted by TheStreet, some 70% of respondents said that Apple should start carving off its cash haul. Almost a third of respondents, however, said that a dividend's not necessary, noting that that the iPhone maker has better uses for its cash.

Dividends have become more common in the tech sector in recent years, with Apple and Google (GOOG) among the handful of large-cap names eschewing payments. Microsoft (MSFT), for example, reversed its dividend stance and made its first payment in 2003, while Cisco (CSCO) announced its first-ever cash dividend last year.

Critics of an Apple dividend, however, have pointed to the company's return on equity, need for innovation and potential future acquisitions.

Apple's shares, which surpassed $600 last week, have climbed more than 47% this year.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,390.52 +195.10 1.13%
S&P 500 2,018.05 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs