Apple plans for dividend and share repurchase of USD 10 bn

Apple intends to pay shareholders dividends and spend up to USD 10 billion on a share buyback.

Apple would pay a quarterly dividend of $2.65 per share in the fourth quarter of FY 2012, subject to the declaration by Board of Directors. The company intends to spend $45 billion of domestic cash over three years, Apple said in a press statement.

"Additionally, the Company'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," added the statement.

“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,” said Tim Cook, Apple's CEO.

“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.” he added.