Apple unveils share buyback programme and quarterly dividend scheme

Apple, the world’s most valuable company, said it will initiate a regular quarterly dividend of $2.65 a share in July and will buy back up to $10bn of its stock starting in fiscal 2013. The share buyback programme is expected to be executed over three years, with the primary objective of offsetting the impact of employee stock options and equity grants.

“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,” Tim Cook, Apple’s chief executive, said.

Mr Cook added the company would still maintain a ‘war chest’ for other strategic opportunities.

The company said it anticipates using around $45bn of domestic cash in the first three years of its buyback and dividend programmes.

The maker of the iPhone, iPad and iPod has $98bn in cash and securities, equal to about $104 a share according to ISI Group analyst Brian Marshall.

Apple last paid a dividend in 1995, Thomson Reuters data showed.

In 1996, Apple posted a net loss of $816m.