Apple To Use Their Cash Reserve To Pay Dividends And Buy Back Stock

Apple has a cash reserve of $100 Billion dollars. To put that into perspective, Apple has more cash than the US Treasury Department. So the question is what should they do with all that cash. They could lend some to the US Government, but instead they decided to do two things. One is to buy back shares of Apple stock. That will increase the value of their shares. Second, they’ve decided to pay dividends to their shareholders starting in July.

Cha Ching.

I should note that it is the first time Apple has declared a dividend since 1995. And the company said that there’s more coming.I guess that when you sell three million iPads in a weekend, you can do that.

Leave a Reply

%d bloggers like this: