Apple announces plans to initiate $2.65 dividend, $10 billion share repurchase program

Apple is holding a conference call this morning to inform the world how they plan on spending their $100 billion boatload of cash. Both Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, will be present but in a press release Apple revealed they’ll initiate quarterly dividends of $2.65/share (this will start on July 1, 2012), and a $10 billion share repurchase program that will start fiscal 2013 (September 30, 2012).

Apple stated that “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”

Peter Oppenheimer, Apple’s CFO stated that “Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilizing approximately $45 billion of domestic cash in the first three years of our programs. We are extremely confident in our future and see tremendous opportunities ahead.”

Tim Cook, Apple’s CEO said that “We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future. Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”

Apple stock (AAPL) is currently up +13.75 (2.35%), $599.32/share, in pre-market opening.

Update: The stock market is now open, Apple stock is now sitting above $597, up over 2%.

Update #2: Apple CEO is currently taking analyst calls, someone asked how the New iPad did on opening weekend, Cook stated that “We had a record weekend and we’re thrilled with it, but this call isn’t to discuss the current business”

Full press release below:

Apple Announces Plans to Initiate Dividend and Share Repurchase Program
Expects to Spend $45 Billion Over Three Years

MARKHAM, Ontario—March 19, 2012—Apple today announced plans to initiate a dividend and share repurchase program commencing later this year.

Subject to declaration by the Board of Directors, the Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012.

Additionally, the Company’s Board of Directors has authorized a $10 billion share repurchase program commencing in the Company’s fiscal 2013, which begins on September 30, 2012. The repurchase program is expected to be executed over three years, with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programs.

“We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure. You’ll see more of all of these in the future,” said Tim Cook, Apple’s CEO. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”

“Combining dividends, share repurchases, and cash used to net-share-settle vesting RSUs, we anticipate utilizing approximately $45 billion of domestic cash in the first three years of our programs,” said Peter Oppenheimer, Apple’s CFO. “We are extremely confident in our future and see tremendous opportunities ahead.”