Finally we know what Apple is going to do with its pile of cash. The wait is over. Tim Cook has spoken:
Apple said Monday it plans to spend a portion of its $98 billion cash hoard — a record for a public company — to offer a $2.65 a share quarterly dividend and launch a $10 billion share repurchase program.
The maker of iPads, iPods, and the iPhone said it anticipates using around $45 billion of domestic cash in the first three years of its programs, adding that it will be able to maintain a sufficient war chest for strategic opportunities even with these payouts. (CNBC)
How to we get to a 1.8% dividend? Multiple the $2.65 per quarter dividend by four quarters and then divide that number by the share price of let’s say $600 a share and then multiple that number by 100 to get the percent:
$2.65 x 4 = $10.6
$10.6 / $600 = .0176
.0176 x 100 = 1.76%