Only a couple of days ago we saw Apple Inc. (AAPL) break its own records for their share price, and this saw the Apple stock jump over the $600 mark, which showed continued confidence in the brand. We also had a quick look at how far the share price has come, especially considering it had only been $10 around 10 years ago.
Two days later Apple has announced that it plans on spending some of the cash reserves, which apparently total over $100 billion. Apple has suggested that a quarterly dividend could be taken to buy back stock, and this follows pressure from Wall Street over Apple not doing enough with the cash they’re sitting on. This move would allow Apple to reward shareholders, give it the ability to award stock to employees without causing problems for existing shareholders, and also make Apple’s stock more attractive to new investors.
The plan would mean spending $10 billion over three-years with its stock repurchase program, and a total of $45 billion from the combined initiatives. You can expect Apple to pay shareholders $2.65 a share every quarter from the start of Apple’s fiscal fourth quarter, which means new investors can make regular income from the stock, and again a more attractive purchase.
Do you think this is a good move by Apple? Right after this announcement from Apple we saw the stock rise just over one and half percent, although at the time of writing the price sits at $601.10.
We’ve included three videos below – the first one looks at the recent news about Apple’s stock dividend/buyback, and also suggests a few ideas where Apple could go next in the technology world. The second and third videos show how to trade the Apple stock during the dividend news, which was from live coverage earlier today and might give you some insight for future trades.