Sunday, December 21st6.4°C
24562
24285

Apple to split stock, increase stock buyback program, raise dividend as revenue growth slows

CUPERTINO, Calif. - Apple plans to buy back an additional $30 billion of its stock, raise its quarterly dividend by 8 per cent and split its stock for the first time in nine years.

The commitment announced Wednesday as part of Apple's fiscal second-quarter earnings report expands on the company's previous pledge to spend $60 billion on stock buybacks by the end of next year. The company is now earmarking $90 billion for buybacks during that time frame.

Apple Inc. also is raising its quarterly dividend to $3.29 per share as part its effort to funnel more money to stockholders.

The company also will execute an unusual seven-for-one stock split in early June. The move will dramatically decrease the nominal value of Apple's stock, which closed Wednesday at $524.75, though the total value of the company shouldn't change from the split.

Apple's stock soared by nearly 8 per cent in extended trading after the news came out.

The slowdown in revenue growth has prompted investors to wonder whether the company has lost its innovative power since the death of Steve Jobs.

The results for the first three months of the year illustrated how Apple Inc. can afford to spend so much money on its own stock.

Apple's earnings rose 7 per cent to $10.2 billion, or $11.62 per share, an amount that exceeds what most technology companies make in an entire year. Revenue climbed by 5 per cent to $45.6 billion.

The Cupertino, Calif., company's quarterly revenue growth has been stuck between 1 per cent and 6 per cent for the past year.

Investors have been worried about the future of Apple since Jobs, its co-founder and chief visionary, died in October 2011. Those worries have been compounded by the fierce competition that Apple faces in the mobile device market, particularly from Samsung Electronics Co.

The company's stock price has been about 25 per cent below its peak of $705.07 reached 19 months ago. The shares rose to $565.48 in Wednesday's extending trading.

The quarter was highlighted by a 17 per cent increase in iPhone sales from the same time last year to 43.7 million units, boosted by strong demand in China, the U.S., Western Europe and Japan, according to Luca Maestri, who will become the company's chief financial officer later this year.

But iPad sales slipped fell 16 per cent from last year to about 16.4 million tablets.

The Canadian Press


Read more Business News

24376


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8622+0.0005
Gold1195.90+2.50
Oil56.50+2.39
Lumber338.00-0.70
Natural Gas3.464-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
24130


24588

FEATURED Property
212412270 A Forest Lane
4 bedrooms 3 baths
$400
more details
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_



24437

24111


Member of BC Press Council


24409