Apple’s Dividend: Break with late Steve Jobs

Apple announced Monday it will spend part of its massive cash hoard to pay its first dividend since 1995 to shareholders and buy back $10 billion in shares. Apple will now pay a quarterly dividend of $2.65 per share, estimated to be at least $97 billion from sales of its hugely successful gadgets like the iPad and iPhone.

Image Credit: dispatch.com

Apple said that the dividend payment would start with the company’s 2012 fiscal fourth quarter, which begins on July 1st. The development also suggests a break with the way Apple was run under late Chief Executive Steve Jobs.

Tim Cook, Apple’s chief executive said on a statement that the company used some of their 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. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business,” says Tim.

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