What Is Apple Going to Do About Its Dividend?
A quarterly conference call on Wednesday brought an answer to Carl Icahn’s — American businessman and owner of Icahn Enterprises (NASDAQ:IEP) — questions about Apple’s (NASDAQ:AAPL) dividends, or so says MarketWatch. CEO of Apple, Tim Cook, and Chief Financial Officer Peter Oppenheimer announced that they planned to continue on their current plan of share buybacks and dividend payments.
According to Oppenheimer, it’s this very plan that has shelled out $36 billion to shareholders over the last five quarters — $23 billion to repurchase shares, and $13 billion given to shareholders as dividends.
Icahn had asked if Apple would be using $150 billion out of its cash hoard, nearly all of that sum — but the company is keeping investors calm with a secondary dividend payoff in this quarter — assuming they re-purchase enough stock by November 11. There is good reason, it turns out, for the company not pulling some of that cash and using it to pay one big lump sum dividend — and it has to do with U.S. law.