The Daily Caller

The Daily Caller

              FILE - In this March 7, 2012 file photo, a new Apple iPad is on display during an Apple event in San Francisco. A report issued Monday, March 19, 2012 found that mobile technology is increasing the public appetite for news. Tablets are growing in popularity and there  FILE - In this March 7, 2012 file photo, a new Apple iPad is on display during an Apple event in San Francisco. A report issued Monday, March 19, 2012 found that mobile technology is increasing the public appetite for news. Tablets are growing in popularity and there's evidence that people spend more time with news on tablets than they do on smartphones or desktops. (AP Photo/Paul Sakuma, File)   

Apple stock stumbles after dividend announcement

Apple stock is trading at $595 in Germany following the company’s announcement of a dividend and buyback program, Bloomberg says.

The stock is still halted in U.S. trading.

Prior to the announcement, the stock traded up as high as $606.

This is obviously not a big percentage drop. But lots of people were expecting the stock to gap up on the news.

The announced dividend is $2.65 a quarter, or $10.60 a year.  That’s a yield of 1.8% on a $600 stock price.

The potential buyback is $10 billion, which is very modest on a $600 billion market capitalization.

Apple expects the dividend and buyback to cost about $45 billion over three years. This is likely to be less than one-third of the new cash Apple will bring in over that period. (Apple’s free cash flow was $~35 billion in 2011, and we expect that will increase significantly over the next three years.)

SEE ALSO: Apple Announces $11 Dividend And $10 Billion Buyback

 

 

Please follow SAI on Twitter and Facebook.

Join the conversation about this story »

See Also: