Something that hasn’t happened since 1995 was announced by the one of the biggest companies in the world. Apple will begin paying out dividends in July at $2.65 a share. The following fiscal year they will be buying back up to $10 billion and this is all under Cook’s supervision, which seems to come with a different idea than the late Steve Jobs.
It’s really no surprise that Apple Inc. has managed to accrue so much wealth over the years. With their latest addition to their portfolio – the new iPad – they have already sold more than 3 million devices, making them a best-seller in the first weekend it was out.
Being that that Cook has held the spot at CEO for less than a year, many have stated that a new type of management is coming to the company. Without doubt, the pay out of dividends is very different than what Steve Jobs did during his time, especially because he said capital preservation was essential for Apple.
The moment that Cook was appointed as CEO, people started to wonder what would become of the company. For so many years, Apple followed the lead of a man with the ability to create products that changed the way the market worked and the way consumers saw a brand. Nevertheless, the numbers speak for themselves as the company’s shares have increased 50% in the time Cook has been head of the company. Moreover, just the past week they reached the $600 mark for the first time in the history of Apple.
But those that accompany Cook in the managing of the company don’t want to feel too comfortable, even though the company has been experiencing nothing but success. When Jobs was the head of the company, he always told Cook to be himself, and their combined forces is what propelled the company forward.
To this day, the influence of Jobs is still well within the company, despite the fact that Cook has been doing certain things in his own way. But it’s important to note that Cook has been with the company for a while and the experience he accrued as an IBM executive has tweaked his abilities. He was in charge of the release of the iPhone 4S and the newest iPad, which has set a new record in sales.
The CEO has stated that one of the things that have set Apple apart is their innovation, and they will continue on the same path. Additionally, their innovation has proven to be critical for their success, since their revenue is based off newer products.
The experts have stated that the fact that Apple is going to pay dividends, more investors may be attracted to investing in the company. As of now, it will be about 1.8% to be paid as dividend every year for a period of three years. They are thinking of using $45 billion they have within the USA but don’t have any plans of bringing the cash they have outside of the country due to the existing tax laws.
Source: Reuters
