Tag - Dividend
According to a filing from Apple with the US Securities and Exchange Commission, the iPhone maker is planning to set up another bond sale to raise money for initiatives such as US expansion, stock buybacks, and dividend payouts. Apple, which has spent some $110 billion on share repurchases over the last few years, borrows money despite having a $216 billion dollar treasury because interest rates are low enough that the company saves billions compared to "repatriating" its foreign-held funds.
Apple is once again turning to the debt markets to finance its stock buyback and dividend payout programs, a new filing with the US Securities and Exchange Commission has revealed. The iPhone maker will issue a new, €2 billion Euro (roughly $2.26 billion US) debt offering in order to continue to take advantage of extremely low interest rates. Only two notes will be offered, at €1 billion each, which will mature between January 2024 and the fall of 2027. The company last offered a Euro-based debt sale late last year.
On Monday, Apple announced major increases in dividends, as well as an increase in both the share buyback program and total capital return to investors. Apple will expand its buyback program to $140 billion, an increase of $50 billion over the current program. Dividends will increase starting with fiscal Q2, rising to 52 cents per share from 47 cents per share -- and the company has reiterated that there will be more dividend increases annually.
Shareholders of record in AAPL as of November 6 will receive a dividend of 47 cents per share once again in the second dispersal of revenue since the stock was split 7-to-1 last June. The company will pay out some $2.75 billion in dividends on 5.866 billion outstanding shares -- about 800 million fewer shares than seen before the aggressive share buyback program started last year. The stock closed the week at an all-time record high of $108 per share for the second week running.
Tech analyst Gene Munster of Piper Jaffray has told investors in a new memo that he expects "moderate" increases in both Apple's share-buyback program and its dividend to shareholders, likely to be announced during the company's next earnings call, scheduled for April 23. This belief, he noted, is already "priced into" shares of AAPL and is unlikely to take price any higher in and of itself. The current quarterly dividend, raised last year, is $3.05 per common share.
The close of the market today, which saw Apple's stock rise $3.80 to close at $512.59, marked the beginning of the company's "ex-dividend" period, where no new trades of AAPL will be included in dividend calculations. Shareholders of record will receive $3.05 per share beginning Thursday, February 13, with the annual shareholders' meeting scheduled to take place two weeks later. The question of how Apple manages its enormous cash hoard has become something of a public spat between two large-volume investors, Carl Icahn and the California Public Employees' Retirement System (CalPERS).
If you held any AAPL stock as of last Wednesday, your account is going to get a little boost tomorrow. Apple will be paying $3.05 per share to "shareholders of record" as of November 6 in the latest quarterly dividend, which arrives tomorrow and totals nearly $3 billion, a 15 percent rise from the year-ago quarter. While the amount Apple has paid out has gone up over the last few quarters, the company has actually saved billions in stock buybacks.
Microsoft has announced it will be raising its quarterly dividend, at the same time as starting a share buyback program. The scheme sees Microsoft authorizing up to $40 billion in share repurchases, with no expiration date set for the program, with the new buyback plan replacing an earlier $40 billion scheme that was set to expire at the end of this month.
Despite moves to buy back shares in itself and the creation of a dividend program, Apple adds money to its enormous cash reserve far faster than it can distribute it -- a problem many companies would like to have, but one that is actually quite thorny for Apple. Wall Street appears to be orchestrating an effort -- or acting on insider information -- to put pressure on the company to make some kind of announcement for a future, additional dispersal of cash to investors. Meanwhile, governments have increased their calls for the "repatriation" of foreign-held profits.
For most companies, a payout of $2.5 billion dollars (working out to $2.65 per share for each of its 935 million outstanding shares) would be manna from heaven, but for Apple the significant dividend being distributed today -- only the second such payment in the last 17 years -- doesn't even begin to match its ability to generate revenue or add to its cash stockpile. Over the course of fiscal 2013, the company will spend an additional $7.5 billion in dividends, but is likely to finish the year -- or indeed, this quarter -- with more than that amount added to its cash balance.
Now AAPL Stock: 120 ( + 0.22 )
Cirrus creates Lightning-headphone dev kit
Apple supplier Cirrus Logic has introduced a MFi-compliant new development kit for companies interested in using Cirrus' chips to create Lightning-based headphones, which -- regardless of whether rumors about Apple dropping the analog headphone jack in its iPhone this fall -- can offer advantages to music-loving iOS device users. The kit mentions some of the advantages of an all-digital headset or headphone connector, including higher-bitrate support, a more customizable experience, and support for power and data transfer into headphone hardware. Several companies already make Lightning headphones, and Apple has supported the concept since June 2014. http://bit.ly/29giiZj
Apple Store app offers Procreate Pocket
The Apple Store app for iPhone, which periodically rewards users with free app gifts, is now offering the iPhone "Pocket" version of drawing app Procreate for those who have the free Apple Store app until July 28. Users who have redeemed the offer by navigating to the "Stores" tab of the app and swiping past the "iPhone Upgrade Program" banner to the "Procreate" banner have noted that only the limited Pocket (iPhone) version of the app is available free, even if the Apple Store app is installed and the offer redeemed on an iPad. The Pocket version currently sells for $3 on the iOS App Store. [32.4MB]
Porsche adds CarPlay to 2017 Panamera
Porsche has added a fifth model of vehicle to its CarPlay-supported lineup, announcing that the 2017 Panamera -- which will arrive in the US in January -- will include Apple's infotainment technology, and be seen on a giant 12.3-inch touchscreen as part of an all-new Porsche Communication Management system. The luxury sedan starts at $99,900 for the 4S model, and scales up to the Panamera Turbo, which sells for $146,900. Other vehicles that currently support CarPlay include the 2016 911 and the 2017 models of Macan, 718 Boxster, and 718 Cayman. The company did not mention support for Google's corresponding Android Auto in its announcement. http://bit.ly/295ZQ94
Apple employees testing wheelchair features
New features included in the forthcoming watchOS 3 are being tested by Apple retail store employees, including a new activity-tracking feature that has been designed with wheelchair users in mind. The move is slightly unusual in that, while retail employees have previously been used to test pre-release versions of OS X and iOS, this marks the first time they've been included in the otherwise developer-only watchOS betas. The company is said to have gone to great lengths to modify the activity tracker for wheelchair users, including changing the "time to stand" notification to "time to roll" and including two wheelchair-centric workout apps. http://bit.ly/2955JDa
SanDisk reveals two 256GB microSDXC cards
SanDisk has introduced two 256GB microSDXC cards. Arriving in August for $150, the Ultra microSDXC UHS-I Premium Edition card offers transfer speeds of up to 95MB/s for reading data. The Extreme microSDXC UHS-I card can read at a fast 100MB/s and write at up to 90MB/s, and will be shipping sometime in the fourth quarter for $200. http://bit.ly/294Q1If
Apple's third-quarter results due July 26
Apple has advised it will be issuing its third-quarter results on July 26, with a conference call to answer investor and analyst queries about the earnings set to take place later that day. The stream of the call will go live at 2pm PT (5pm ET) via Apple's investor site, with the results themselves expected to be released roughly 30 minutes before the call commences. Apple's guidance for the quarter put revenue at between $41 billion and $43 billion. http://apple.co/1oi1Pbm
Twitter stickers slowly roll out to users
Twitter has introduced "stickers," allowing users to add extra graphical elements to their photos before uploading them to the micro-blogging service. A library of hundreds of accessories, props, and emoji will be available to use as stickers, which can be resized, rotated, and placed anywhere on the photograph. Images with stickers will also become searchable with viewers able to select a sticker to see how others use the same graphic in their own posts. Twitter advises stickers will be rolling out to users over the next few weeks, and will work on both the mobile apps and through the browser. http://bit.ly/29bbwUE