Apple thsi morning announced plans to initiate a dividend and share repurchase program commencing later this year. Subject to declaration by the Board of Directors, Apple plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012. Additionally, Apple’s Board of Directors has authorized a $10 billion share repurchase program commencing in the company’s fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.
“Morgan Stanley explains why investors should be happy about this,” Joe Weisenthal writes for The Business Insider.
• In the last 10 years, the top 1/3 of tech stocks ranked by dividend yield have outperformed the bottom 1/3 by 14% on average
• AAPL is underexposed to income and yield funds compared to large cap tech peers, which means a dividend can broaden the investor base