Apple has announced that it will invest more than $10bn in a stock buyback scheme over the course of three years, and will spend around $10bn per year on paying out stock dividends.
Apple boss Tim Cook has announced a $10bn stock buyback scheme and a plan to pay out stock dividends. Image credit: Sarah Tew/CNET
Tim Cook, chief executive of Apple, said that the scheme would begin in the company's next financial year, which starts in September. He cited the plans during a conference call on Monday in which Cook outlined Apple's plans to do with its $100bn (£63bn) cash reserves.
In addition to launching the share repurchase program, Apple also said it would launch a dividend scheme for shareholders to reward their investment. It expects the first dividend payments of $2.65 per share to begin in the fourth quarter of its fiscal 2012 year.
"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," said Cook.
"Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program," he added.
In total, Apple expects to use around $45bn of its cash reserves to carry out the plans, Peter Oppenheimer, chief financial officer at Apple, said.
Apple's well-performing iPhone, iPad and Mac ranges have helped amass the fortune, Cook said. However, he refused to be drawn on commenting on the number of new iPad sales over the weekend since its launch on 17 March but said that "we had a record weekend".
Cook also revealed that Apple had new product announcements on the horizon but was not ready to share details.
"We do actually like to announce new products," Cook said. "We just don't like to do it during a conference call."