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| Apple's Cook shares $98 billion cac |
| Apple's Cook shares $98 billion cache
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| UNITED STATES OF AMERICA
, 20-March-2012
3:44:42 AM |
| Apple Inc CEO Tim Cook, moving swiftly after taking over from the late Silicon Valley icon Steve Jobs, fulfilled a longstanding desire of investors by initiating a quarterly dividend and share buyback that will pay out $45 billion over three years.
The world's most valuable technology company will start paying its first dividends since 1995 - a regular quarterly payout of $2.65 a share - in July, and buy back up to $10 billion of its stock beginning in the next fiscal year.
The $10 billion annual dividend program, which Mr Cook said will be reviewed periodically, ranks among the largest current U.S. corporate cash payouts. Yet it disappointed some fund managers, given the immense war chest Apple boasts, and a 1.8 per cent dividend yield that lags the S&P 500 average.
Mr Cook told analysts on Monday that "making great products" remained top priority, echoing the sentiments of his former boss, who died last October after a years-long battle with cancer.
Jobs' former lieutenant has impressed Wall Street since taking the helm. He made his mark revealing Apple's production partners and initiating investigations into allegations of labour abuse in its supply chain, and addressing investors directly at this year's Goldman Sachs conference. But the question of whether the operations maven can envision revolutionary products still lingers for some.
Mr Cook's move came less than a year after he was appointed head of the company and suggested to many a move away from Jobs' era, when a dividend was often mentioned but not acted upon.
"Already we are seeing more openness, and more willingness to address issues on many different fronts under Tim Cook than we had seen in the past," said Connor Browne, portfolio manager of Thornburg Value Fund.
"While all this other stuff is good, there is still some pressure on management to come out with fantastic products over the coming months," he said.
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