Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

4/24/2014 (5 months ago)

Catholic Online (www.catholic.org)

Stock splits, huge dividend increases intended to win back investors

Sometimes, it's best to kill them with kindness. Investors with Apple are growing disappointed with slower than usual growth. To address, the tech giant is planning a "charm offensive" to garner enthusiasm. Part of that strategy will be stock splits and huge dividend increases. 

'We are planning for annual dividend increases,' CEO Tim Cook on a conference call with investors said.

"We are planning for annual dividend increases," CEO Tim Cook on a conference call with investors said.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

4/24/2014 (5 months ago)

Published in Business & Economics

Keywords: Apple, stock splits, incentives, investors


LOS ANGELES, CA (Catholic Online) - Apple grew its revenue to $45.6 billion at the beginning of this year. Apple performed well above analysts' predictions of $43.5 billion in revenue. 

A seven-for-one stock split in order for every investor will get six additional shares. Apple has performed stock splits in 1987, 2000 and 2005, only on a much smaller scale. Apple has done only two-for-one stock splits in the past where investors received two shares for every one they owned.

Check out our fine selection of Bibles -- by going here!

On news of the stock split, Apple's stock rapidly jumped eight percent, or $42 in after-hours trading, landing at $566 before stopping.

Another incentive offered to investors was by growing its spending on dividends and share buybacks by one-third to $130 billion. Stockholders like dividends because they promise easy and reliable income. The generous Apple is raising its dividend twice in two years and paying $11 billion annually to its shareholders.

Investors like share buybacks as it allows them to get premium prices for their stock. The companies in turn use their cash, which otherwise lays dormant unless it is invested somewhere.

"We are planning for annual dividend increases," CEO Tim Cook on a conference call with investors said.

The stock split is hoped to achieve several of Apple's financial goals to please investors, who have been looking to the company to dazzle with new product offerings.

The split will also make it more expensive for large investors to gain a large stake in the company, which may go towards some way towards fending off activist hedge fund managers like Carl Icahn and David Einhorn, who have dogged the company in recent years to force it to boost the price of its stock.

Icahn had persuaded the company to use some of its infamously large cash hoard of over $140 billion to pay dividends and buy back its own stock. His efforts helped raise Apple's stock to $529.

While Apple has faced down those activist investors, the company has not dazzled on its growth or results.

"The thing that drives us are the next iPads, if you will, the things in the pipeline," Cook says.

"People want something great - insanely great," Cook said of the company's plans for acquisitions. "And that's what we want to deliver."

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2014
Peace:
That the Lord may grant peace to those parts of the world most battered by war and violence.
World Mission Day: That World Mission Day may rekindle in every believer zeal for carrying the Gospel into all the world.



Comments


More Business & Economics

Christmas shopping in October? Apparently it's becoming a big deal Watch

Image of Shoppers are already out, despite the fact Halloween hasn't even arrived.

By Catholic Online (NEWS CONSORTIUM)

Shoppers are starting early with October 5 being declared by retailers as "Stock Up Saturday." Consumers are already Christmas shopping which means more of the revenue available to retailers will be harvested earlier in the shopping season. For retailers that choose to ... continue reading


List of Top 20 World Brands - Apple tops Google as world's leading brand for second time in row Watch

Image of The Apple Watch has enjoyed success in numerous fashion circles, featured on the cover of Vogue, among others.

By Catholic Online (NEWS CONSORTIUM)

Apple has topped Google as the world's most valuable brand for the second year in a row. The two companies are the only brands to be valued at more than $100 billion, according to the annual Best Global Brands report. LOS ANGELES, CA (Catholic Online) - ... continue reading


Here they come! China passes U.S. economy based on purchase power Watch

Image of Under President Obama's administration, China may surpass the U.S. economy.

By Catholic Online (NEWS CONSORTIUM)

The International Monetary Fund (IMF) has reported that China has overtaken the United States and is now the world's largest economy, at least based on purchasing power parity (PPP). LOS ANGELES, CA (Catholic Online) - The IMF said that by the end of 2014, China ... continue reading


Rosie the Riveter would cry: Record 55,553,000 women not participating in U.S. workforce Watch

Image of The strides made by women in the workplace sadly isn't reflected in recent job statistics.

By Catholic Online (NEWS CONSORTIUM)

The strides made by women in the workplace seems to have gone up in smoke across the United States. The determined visage of Rosie the Riveter during World War II to women taking the place of men in hard industry - declaring "We can do it!" would certainly shed ... continue reading


400 wealthiest Americans now worth cumulative $2.3 TRILLION Watch

Image of Facebook founder Mark Zuckerberg has finally cracked America's most wealthy top ten at tenth place.

By Catholic Online (NEWS CONSORTIUM)

The rich, indeed get richer -- America's wealthiest are worth more than ever before. The United States' top 400 billionaires are now worth a dazzling $2.3 trillion, according to the latest edition of the Forbes 400. LOS ANGELES, CA (Catholic Online) - It comes ... continue reading


Record debt coupled with slow growth point to economic crisis, Geneva Report says Watch

Image of The Geneva Report says the rapid rise of public sector debt in rich countries and private debt in emerging markets, especially China, may lead to0 fresh economic crisis.

By Catholic Online (NEWS CONSORTIUM)

Record debt and slowing economic growth suggest the global economy could be heading for another crisis, the 16th annual Geneva Report warns. Commissioned by the International Center for Monetary and Banking Studies, the report predicts interest rates across the ... continue reading


Walmart to enter banking world with low-cost checking accounts Watch

Image of Walmart has been eying financial services for some time now.

By Catholic Online (NEWS CONSORTIUM)

Walmart is making its biggest venture into the banking world after several failed attempts in the past. The nation's largest retailer is joining Green Dot, already known for its prepaid payment cards, to supply checking accounts to nearly everyone over 18 years ... continue reading


The Chinese are coming! E-commerce giant Alibaba cleans house with its initial public offering Watch

Image of Chinese e-commerce giant Alibaba has raised more than $21 billion with its IPO, with stocks priced at $68 per share, signaling a strong demand for the tech-giant.

By Catholic Online (NEWS CONSORTIUM)

The Chinese e-commerce giant Alibaba has made the largest U.S.-listed initial public offering (IPO) of all time, with stocks priced at $68 per share, signaling a strong demand. LOS ANGELES, CA (Catholic Online) - Only large investors, like hedge funds, can ... continue reading


Bottom of the Barrel - Thanks to business tax, the U.S. is Number 32 in the world Watch

Image of A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high

By Catholic Online (NEWS CONSORTIUM)

A new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. So says the Wall Street Journal, the nation's leading journal on business. The White House and Sen. Charles Schumer (D., N.Y.) will attempt ... continue reading


Unemployment rate for black Americans at 11.4 percent, more than double the rate for whites Watch

Image of There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap.

By Catholic Online - (NEWS CONSORTIUM)

There remains a wide disparity in employment in the United States, in spite of efforts to close this broadening gap. Figures show that while unemployment nationwide is 6.1 percent, the unemployment rate for black Americans at 11.4 percent. LOS ANGELES, CA ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Ephesians 2:12-22
12 do not forget, I say, that you were at that time ... Read More

Psalm, Psalms 85:9-10, 11-12, 13-14
9 His saving help is near for those who fear him, his ... Read More

Gospel, Luke 12:35-38
35 'See that you have your belts done up and your ... Read More

Saint of the Day

Saint of the Day for October 21st, 2014 Image

St. Hilarion
October 21: Abbot and disciple of St. Anthony the Great, companion of St. ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter