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: 100.35 ( -0.06 )
Trade-up program expands in Europe
Smartphone users in France, Italy, and Spain will have until at least August of this year to trade in old iPhone, Windows Phone, or Android models at Apple Stores, and put the reward towards a new iPhone -- thanks to an expansion of Apple's trade-in program into those countries. The money given for the trade-in must be applied towards a new iPhone on a two-year payment plane, and traders must qualify under a credit check as part of the program. Interested customers can apply for the trade-in at their nearest Apple Store. http://bit.ly/1qPsldD
NBCUniversal adds Bravo, Syfy, E! to Apple TV
NBCUniversal has launched three new apps channels for Apple TV users. Bravo Now, Syfy Now and E! Now brings users access full seasons of current and past episodes of most of NBCUniversal's catalog. The Bravo Now app includes shows like "The Real Housewives of New York Cit," "Below Deck Mediterranean," comedy "Odd Mom Out" and "Top Chef." The Syfy Now app offers up shows like "The Magicians," thriller "12 Monkeys" and the reality show "Face Off." The E! Now app serves up shows like "Keeping Up with the Kardashians," "Botched," "#RichKids of Beverly Hills," Caitlyn Jenner's "I Am Cait," and "WAGS." While some content is free, most content requires users to authenticate via their cable satellite or telco TV provider. http://bit.ly/20K4Pea
Apple rolls out Arabic version of Apple.com
Apple has rolled out a new version of its Apple.com website for Arabic language users in the United Arab Emirates. The site utilizes a right-to-left reading format where it has been updated, although the upgrade is still in progress with a number of page links still in the original English language left-to-right format. Of particular note is that the site debuts an all-new custom Arabic font created by the Tarek Atrissi Design agency, giving it a highly contemporary look and feel. The new support for Arabic on its host website follows the introduction of full support for right-to-left languages in iOS 9, and the addition of Arabic support to Siri late last year. http://apple.co/20JHGIM
Adobe previews Photoshop content-aware crop
Adobe has previewed a new 'content-aware crop' feature from the next version of its Photoshop CC. The new feature is similar to its 'content-aware fill' from the current version of Photoshop CC, and potentially saves users time when cropping photos in a way that might otherwise leave blank white space in the frame. Adobe's 'content-aware' tech automatically assesses the blank space and seamlessly fills the blank space with the nearest related content in the space when a photo is expanded or rotated without the need to manually clone that part of the image. The feature allows users to move a horizon by adding more sky or ground, change the aspect ratio by adding content around the edges of the image and fill in the corners of an image when rotated during a crop. Adobe says the feature is coming soon and will be automatically available to Creative Cloud subscribers. http://adobe.ly/20JDFEu
Markzware updates Q2ID for QuarkXPress 12 files
Graphic design file conversion tool maker Markzware has launched a new version of its Q2ID tool. The InDesign plugin enables users to open QuarkXPress files within a new InDesign (INDD) document, without rebuilding the QXP document from scratch -- the new version includes support for QuarkXPress 12 files. Q2ID Subscription members can download the new version as part of their annual plan. A single-user can purchase the plugin for $200, with other licensing options available. http://bit.ly/1Z4dS9t
PopChar X 7.5 arrives
Ergonis Software has released PopChar X 7.5, an improved version of the company's tool for finding and inserting special characters and exploring fonts. PopChar X 7.5 adds support for combined emojis in the Apple Color Emoji font, enhances the "Font Info" view, and adds many further enhancements that improve overall speed and stability. PopChar X 7.5 retails for €30 ($34), and is free for anyone who owns a license for PopChar X 7 or purchased a license for PopChar X 6 on or after March 1, 2014 [4.5MB]
Safari Technology Preview release 5 arrives