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Apple to Buy Back $10 Billion in Shares

Apple's Chief Executive, Tim Cook

Apple has announced plans to initiate a dividend and share repurchase programme commencing later this year.

In a statement today, Apple said that it plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1st, 2012.

Additionally, the company’s board of directors has authorized a $10 billion share repurchase program commencing in the company’s fiscal 2013, which begins on September 30th, 2012.

We have used some of our cash to make 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,” said Tim Cook, Apple’s CEO.

The company said that the repurchase program is expected to be executed over three years, “with the primary objective of neutralizing the impact of dilution from future employee equity grants and employee stock purchase programmes”.

Apple last paid a dividend in 1995, before Jobs returned as CEO and led the introduction of top-selling products including the iPod, iPhone and iPad.

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