Apple looks to pay out $45 billion of its hoarded cash

Apple Inc., Cupertino, Calif., announced plans to initiate a dividend and share repurchase program commencing later this year. Subject to declaration by the board, 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, the board authorized a three-year $10 billion share repurchase program commencing in Sept. 30, 2012. According to financial reports, Apple will spend $45 billion on these initiatives; the company has approximately $100 billion in cash.

“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. You’ll see more of all of these in the future,” says Tim Cook, CEO, Apple. “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.”

“Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilizing approximately $45 billion of domestic cash in the first three years of our programs,” says Peter Oppenheimer, Apple’s CFO. “We are extremely confident in our future and see tremendous opportunities ahead.”