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03-20-2012, 10:05 AM #1
Apple to manage cash pile by paying dividend, $10 billion share buyback
Apple is finally putting its cash hoard to work , introducing a quarterly dividend of $2.65 per share and starting a $10 billion share buyback program.
Apple says the dividend will start in its fourth quarter, which begins July 1. The buybacks will begin in its next financial year, which starts September 30.
Apple is sitting on $97.6 billion in cash and securities. For years, it has resisted calls to reward shareholders with some of that money. Since the death of CEO Steve Jobs, management has signaled that it's been considering options for the money.
The expectation of a dividend has already helped send the stock up 37 per cent since Apple's latest earnings report. In pre-market trading, the shares touched a record level of $600.23, up 2.5 per cent from Friday's close.