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: 93.86 ( -1.32 )
Kohls Apple Pay integration with loyalty program
Kohl's customers are now able to pay for their purchases with Kohl's Charge and simultaneously earn loyalty program Yes2You Rewards in conjunction with Apple Pay. The service is currently available in approximately 250 Kohl's stores and is expected to be in all Kohl's stores nationwide later this month, making Kohl's the first retailer to deliver a one-tap checkout that integrates both its private credit card as a form of payment and a loyalty program with Apple Pay. http://yhoo.it/21wEUI6
AirMap iOS app for drone operators
Provider of airspace information and services for unmanned aircraft AirMap announced today the release of the AirMap app for iOS and Apple Watch. Operators can now access low-altitude airspace advisories, create flights, file digital flight notices to over 80 airports, and manage unmanned aircraft. Building on the success of AirMap's Digital Notice and Awareness System (D-NAS), the AirMap app brings to iOS devices a fully integrated airspace management solution for recreational and commercial drone operators. The app is free. http://apple.co/21wCadD
BlackBerry video calling available on iOS
BlackBerry has made its video calling feature available to Android and iOS users. The company reports limited availability of the new cross-platform feature for now, citing "because this is the first time we're launching BBM Video calling, and we want to monitor performance, gather feedback, and iron out any kinks that may arise before we roll it out globally." http://blck.by/1ruu4pC
Apple loses iPhone brand exclusivity in China
Apple has lost its exclusive rights to the 'iPhone' brand in China, the Beijing Municipal High People's Court has ruled. According to Quartz, Chinese company Xintong Tiandi is now free to continue selling its non-smartphone "IPHONE" branded products, which include smartphone cases, among other leather goods. The Chinese court ruled that Xintong Tiandi, which registered the "IPHONE" trademark in 2007, could continue to use the trademark because Apple did not start selling the iPhone in China until 2009. Apple also could not prove that Xintong Tiandi's ongoing use of the trademark would cause Apple material harm. The latest ruling by the Chinese government follows its recent decision to shut down the iTunes Movies and iBooks Store. http://bit.ly/1SNhRmB
Bowers & Wilkins bought by EVA Automation
High-end UK audio equipment maker and fixture in Apple retail stores Bowers & Wilkins has been bought out by a California "smart home" tech firm, EVA Automation. Fomer Bowers & Wilkins owner Joe Atkins will continue as CEO of the joint venture, with EVA Automation founder Gordon Yu acting as executive chairman. The two companies said the merger will combine EVA's AV technologies and Bowers & Wilkins' acoustic engineering talents to grow the now-combined firm. Terms of the deal were not disclosed, and it is expected that the Bowers & Wilkins brand name will continue. http://yhoo.it/1SLt6zj
Micromat MacCheck released for free
Micromat, the developers of TechTool Pro, today announced a new troubleshooting utility called MacCheck. The new product can perform a series of critical tests on Macintosh systems, helping to isolate what might be wrong with a particular computer. The program quickly tests many of the critical systems in a Macintosh computer, including RAM, I/O, Volume Structures, Partition Maps, Batteries, and RAID systems. MacCheck is being offered free of charge and is available for download immediately from the Micromat website. http://bit.ly/1SKFwaV
Hyundai Sonata 2016 gains CarPlay
The 2016 Hyundai Sonata can now be upgraded to incorporate Apple's CarPlay mobile technology, which augments the built-in infotainment system in the car to incorporate many iPhone features, such as Apple Maps and Siri voice control of navigation and other smartphone functions. The upgrade is accomplished through an SD card owners can obtain from their local Hyundai dealer. Although not disclosed, the upgrade was said to cost "a small fee" when it was initially announced in December of last year. http://bit.ly/1TJzK8f