Apple Announces Plans to Initiate Dividend and Share Repurchase Program

Straight from the horse’s mouth:

“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 program.”

Read the entire press release here, ahead of Apple’s conference call.

First thoughts:
Not sure how I feel about this. One the one hand I think it’s good for shareholder’s, and I want to belive that Tim Cook & Co know exactly why they’re doing this, on the other hand I feel they should have used the cash in other ways. I’ll elaborate on this in a future post, when I’ve made up my mind on the issue.

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3 comments on “Apple Announces Plans to Initiate Dividend and Share Repurchase Program

  1. mesanford says:

    I agree with you, not sure this was the right move – but I have been an Apple fan for almost 20 years now and worked with them during the really bad times. I think I’m just paranoid but feel like they should just keep the cash for a “rainy day.”

    Given the more Wall Street friendly leanings of Cook however, it was probably the smartest choice.

    • scottph says:

      I know what you mean!
      But, I’ve been thinking about this since yesterday, and I believe now that it’s a good move by Apple at this point. I’ll write down my thoughts on why in a post today.

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