Apple confirmed Monday that it will use some of its massive $100 billion in cash reserves to reward its loyal shareholders.
This morning, Apple said it will offer a dividend and a share buyback program.
Investors’ anticipation of a dividend has helped drive the company’s market capitalization to $546 billion. And it seems there’s just no stopping that growth.
Apple will pay a quarterly dividend of $2.65 per share, starting in its fiscal fourth quarter, which kicks off July 1. The dividend will cost Apple approximately $10 billion this year.
The share buyback program (Apple will buy back nearly $10 billion in AAPL shares) will begin after September 30th when the company’s new fiscal year gets underway. The program will span three years.
“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,” said Apple CEO Tim Cook. “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.”