Reuters informs that Apple’s new CEO Tim Cook has decided to reward the investors of the company with a dividend and a share buyback. The announcement was communicated on Monday after the board of directors decided to pay its investors $45 billion within the next three years.
More than ten years have passed since Apple paid its first dividend in 1995. The company has registered a significant growth lately; therefore, the new CEO Tim Cook agreed that it was time to reward shareholders for the support they have shown towards the company. As a result, spokespersons announced that the IT giant was willing to pay $45 billion out of its $98 billion cash hoard to its investors.
After carefully considering all the options available, Tim Cook and his consultants agreed that a dividend and a share buyback were the best alternatives they could find. The $45 billion dividend will be gradually distributed to shareholders over three years starting in July. Up to $10 billion will be used as buy back next year, according to the public statement released by the spokespersons of the Silicon Valley company.
Analysts declared that this is the biggest dividend to be paid back in the United States at present. However, some fund managers have been disappointed by the 1.8 percent dividend yield which created an imbalance in the Standard & Poor’s 500 average. In addition, some investors were expecting Apple to pay back a larger sum of money given that the company holds $98 billion.
The iPad manufacturer has raised all this revenue due to the selling of its Macintosh computers and iPhones. It is believed that the company will do even better in the future as the new iPad is one of the best sold tablets at present. Apple announced on Monday that 3 million 4G-enabled tablets were sold during the weekend, thus setting its first weekend record.
Tim Cook told the press during an interview he released on Monday that the company’s top priority remains the production of “great products”. Wall Street investors also stated that they appreciate Cook’s openness towards issues that haven’t been addressed before.