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: 93.59 ( + 1.55 )
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
French show carries on with iPhones
Following a prolonged power loss in a French TV studio, the crew was able to use a combination of limited studio lighting and a number of iPhones to continue taping the Saturday episode of talk show On n'est pas couché ("We're Still Awake"), using the resulting footage in the first edited episode. The Plus-model iPhones used for the impromptu shoot completion were either iPhone 6 Plusses (which shoot in 1080p) or 6s Plus models (which can shoot in 4K). The decision to use the iPhones to complete the show was made after a power outage at France 2's studio stretched to more than three hours. http://bit.ly/299wqDt
Scrivener for iOS to arrive in late July
For some long-time Scrivener users, to quote Paul Simon, "these are the days of miracle and wonders." As it marks its 10th anniversary in business, developer Keith Blount has announced that the long-awaited iOS version of his creative-writing tool Scrivener is to be submitted to the App Store, following strong praise from beta-testers. The program, expected in late July, will sell for $20 and work with both the iPad and iPhone. When we interviewed Blount last January, he added that Scrivener 3 for Mac would follow along shorty afterwards. http://bit.ly/2901XLE
WhatsApp now handles over 100M calls daily
WhatsApp is celebrating that it is being used for over 100 million calls every day. In a brief notice, the Facebook-owned messaging platform advises the voice-calling feature it rolled out to its users last year now deals with an average of over 1,100 calls initiated per second. Earlier this year, it increased the security of its calls and other messages, by introducing end-to-end encryption on all platforms. http://bit.ly/292HqCX
Adele's '25' album now streaming
Recording artist Adele has "pulled a Kanye" after saying that her current album "25" would not be available for streaming. The seven-month-old record, which has yielded a number of hit singles, is now available for streaming on all the major streaming services, such as Apple Music and Spotify, as of today in most major markets, with worldwide distribution to come. Reportedly, the singer had demanded streaming be limited to paid subscribers -- a condition that has hurt some streamers with artists, who aren't paid royalties for free or trial listens . Apple pays performers its normal royalty rates during its free trial, avoiding the issue -- and having repeated success in both signing up exclusives and placing those exclusives into the top of the charts. http://ti.me/28U7NOu
SanDisk iXpand case has battery, storage
A new iPhone 6 and iPhone 6s case from SanDisk appears to be the "holy grail" of accessories: a stylish and protective case that offers both extra storage as well as the option of extra battery power as well. The iXpand Memory case offers either 32GB, 64GB, or 128GB of additional storage incorporated into the case, and an optional add-on battery pack (sold separately) adds up to an extra day or more of charge. Through the associated iXpand app, camera photos and videos can be automatically stored on the extra storage, optionally password-protected, The cost for the case is (in order of storage capacity) $60, $100, and $130. The battery pack's release data has not yet been announced, but the add-on should retail for an additional $30. http://bit.ly/291epHu