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Is Apple's share buyback and dividend program enough?

Posted: , by Daniel P.

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Is Apple's share buyback and dividend program enough?
Apple will be giving away about $10 billion annually from its cash in dividends to shareholders over a timeframe that is three years for now. That amounts to $2.65 a share each quarter, making it one of the largest dividend programs already.

The company will also introduce a $10 billion annual share buyback, aiming to offset the stock price decrease that comes with a dividend, and combat share dilution that will come from employees exercising their stock options.

Over the course of those three years, the total amount Apple will be giving away to its investors will amount to $45 billion, which is almost half of the company's current cash reserves. The money will, of course, come from domestic cash, since if Apple uses its overseas accounts, the dividend and share buyback programs probably wouldn't be as generous, since the money would be immediately taxed.

We were curious whether you see this long-anticipated Apple move as enough for shareholders or do you care at all about it?

Phonearena polls
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Is Apple's share buyback and dividend program enough?
15.15%
30 votes
(30 votes) Yep, it's one of the largest such programs and gives away almost half of Apple's current cash
4.04%
8 votes
(8 votes) I don't own Apple shares, but my pension plan/municipality/police station is heavily invested, so it's all good
27.78%
55 votes
(55 votes) I'd rather have them invest in R&D or innovative companies, shareholders have been made whole already
53.03%
105 votes
(105 votes) OWS! (I don't care)

198 votes

16 Comments
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posted on 19 Mar 2012, 09:34 1

1. hepresearch (unregistered)


If you became an Apple shareholder even just a few years ago, then you have already made a freaking ton of money compared to most of the rest of the market. This isn't about making current shareholders whole... this is about cleaning out the common shareholding riff-raff with incentives to sell shares back to Apple now, decreasing accountability to common shareholders, and incentivizing elite investors and fund managers to invest more through increased rewards.

I was one of the common shareholding riff-raff once upon a time... but I owned just a very little Motorola and a little more Nokia, so I lost all of it eventually. I got cleaned out of the market by a slightly different method.

posted on 19 Mar 2012, 15:00

12. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)


moto bought back my shares.

posted on 19 Mar 2012, 10:15 1

2. shamataa (Posts: 202; Member since: 07 Dec 2011)


LOL! That's how much we don't give a crap about Apple period.

posted on 19 Mar 2012, 10:28 3

3. SuperAndroidEvo (Posts: 4179; Member since: 15 Apr 2011)


Right now or wait until the new iPhone comes out might be a good time to get rid of the any Apple stock. Apple is buying them back so there is some huge money to be made. Their dividend programs are huge but it only happened after share holder backlash.

I really don't pretend to know why Apple is doing this but if there was no backlash from their share holders Apple would not be doing this!

posted on 19 Mar 2012, 14:39 1

10. stealthd (Posts: 968; Member since: 12 Jun 2011)


"I really don't pretend to know why Apple is doing this"

"it only happened after share holder backlash."

Lolwut? Conflict much?

posted on 20 Mar 2012, 07:33 1

20. SuperAndroidEvo (Posts: 4179; Member since: 15 Apr 2011)


lol My point was that I really don't know what Apple's true intentions are. If there was no share holder backlash Apple wouldn't have done this.

I really think Apple wants all the money for themselves but are doing this to save face!

posted on 19 Mar 2012, 10:34 2

4. PAPINYC (Posts: 2308; Member since: 30 Jul 2011)


This entire dividend program and share buy back is in line with Apple's hiStoriCal hardware upgrades: margiNal, very margiNal.

posted on 19 Mar 2012, 14:45 1

11. stealthd (Posts: 968; Member since: 12 Jun 2011)


Right, $45 billion is marginal.

posted on 20 Mar 2012, 00:13

18. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)


when u create a company that affords to chip 45 billions into dividends please let us know

posted on 19 Mar 2012, 12:45 4

5. AbsentbebniM (Posts: 21; Member since: 09 Feb 2012)


hi, i'm @PAPINYC. the only way i can get any attentiOn here iS to wriTe iN a made up form of Apple-centriC camelcase. please don't miNd me. i have nothiNg of value to add. i wriTe siMply to iMpress myself that i can capiTaliZe letters at just the riGht tiMe.

posted on 19 Mar 2012, 14:03 2

6. SuperAndroidEvo (Posts: 4179; Member since: 15 Apr 2011)


There goes that "@" again. You say that abbreviations are teenage girl text-speak but you continue to do it. Man you really have no shame. You can call out someone for using "&" for and but you insist in using "@" for at?

So which one is it AbsentbebniM? I really don't think you are in any shape to be criticizing anyone! ESPECIALLY PAPINYC! Unless your goal is to use teenage girl text-speak as you call it. lol

Man you look like a fool!

posted on 19 Mar 2012, 14:12 2

8. PAPINYC (Posts: 2308; Member since: 30 Jul 2011)


That's iOk, i4giVe her. She is probably just @that menstruAtiVe time of the month or could just be iRregulariTy.

posted on 19 Mar 2012, 14:12 2

9. hepresearch (unregistered)


Hey, whaddaya know? Two thumbs up on Absent's comment again... could it be that taco's two alter-ego profiles both did that again?

posted on 19 Mar 2012, 14:10 4

7. aztaxia12295 (Posts: 266; Member since: 22 Nov 2009)


Charity won't hurt? A billion will killya to help people who are dying? Screw you apple, just a bunch of heartless sobs.

posted on 19 Mar 2012, 18:46

17. lsutigers (Posts: 739; Member since: 08 Mar 2009)


I read somewhere they were considering buying Sprint. Any truth to this?

posted on 20 Mar 2012, 00:14

19. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)


i would say no.. apple doesnt need to buy sprint… i see no leverage they could gain from it.. in fact it might even hurt them as att and verizon leave…

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