Time and space slow to a halt
The fabric of the universe was altered this morning as the news leaked out that Apple was going to give some of its cash pile back to investors.
Under Steve Jobs Apple had a policy of getting as much cash as it could from everyone and the sitting on it. Apple Inc CEO Tim Cook has initiated a quarterly dividend and share buyback that will pay out $45 billion over three years. Strangely Cook wants to buy back up to $10 billion of its stock beginning in the next fiscal year which is odd because he is buying with the price being incredibly high. Companies usually have share buy-backs when the price is low and they can be snaffled up cheaper.
The $10 billion annual dividend program, which Cook said will be reviewed periodically, ranks among the largest current U.S. corporate cash payouts. Sadly the figure announced was not that great. Cook only paid a 1.8 percent dividend which is not really that great given the amount of cash Jobs Mob makes. Under Jobs' a dividend was often mentioned but not acted upon, he insisted the company needed the flexibility of a large cash pile.