Skip to content

Kill them with kindness: Apple launches 'charm offensive'

By Catholic Online (NEWS CONSORTIUM)
4/24/2014 (3 years ago)
Catholic Online (https://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 (https://www.catholic.org)
4/24/2014 (3 years 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."

---


'Help Give every Student and Teacher FREE resources for a world-class Moral Catholic Education'


Copyright 2018 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for APRIL 2018
For those who have Responsibility in Economic Matters.
That economists may have the courage to reject any economy of exclusion and know how to open new paths.


Comments


More Business & Economics

Disaster looming? Market flashes warning, worst April since Great Depression Watch

Image of The stock market is in decline. Is recession looming?

Markets have suffered their worst April start since the Great Depression, led by Amazon which lost 5.21 percent of its value in one day ... continue reading


Stock market tumbles, is a recession on the way? Watch

Image of The stock market took a tumble yesterday but may recover today. Nobody is certain of what's next.

Global markets have dropped for the past few days, and just this morning have rebounded. It remains to be seen if the recovery is ... continue reading


Is free money a Christian solution to economic problems? Watch

Image of Is there a Christian solution to our economic problems?

The world is richer and more productive than ever before in history. Yet, income inequality is growing the poverty is on the rise. Middle ... continue reading


Income inequality - Here's why world poverty and hunger remain a problem, frustrating Pope Francis' efforts to solve the crisis Watch

Image of Pope Francis has spearheaded a campaign to end world hunger by 2020.

When Pope Francis accepted the chair of St. Peter, he pledged to end world hunger by 2020. By all appearances, it was an easy win. The math ... continue reading


Jobless claims historic low! - Why workers are getting raises this year, thanks to President Trump Watch

Image of Workers are finally being dealt back into the American Dream, thanks in part to President Trump's economic policies.

Say what you will about President Trump, but American workers are starting to "win" under his administration. Jobless claims have reached a ... continue reading


Never Miss any Updates!

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

Information
Learn about Catholic world

Catholic Online
Inform - Inspire - Ignite

Catholic Online Saints
Your saints explained

Catholic Online Prayers
Prayers for every need

Catholic Online Bible
Complete bible online

Catholic Online News
Your news Catholic eye

Daily Reading
Today's bible reading

Lent / Easter
Death & resurrection of Jesus

Advent / Christmas
Birth of Jesus

Rest of Catholic Online
All Catholic world we offer

Services
Products and services we offer

Catholic Online Shopping
Catholic medals, gifts & books

The California Network
Inspiring streaming service

Advertise on Catholic Online
Your ads on catholic.org

Catholic Online Email
Email with Catholic feel

Catholic Online Singles
Safe, secure Catholic dating

The California Studios
World-class post production service

Education
Learn the Catholic way

Catholic Online School
Free Catholic education for all

Student Classes
K-12 & Adult Education Classes

School Teachers
Teacher lesson plans & resources

Support Free Education
Tax deductible support Free education

Socials
Connect with us online

Catholic Online on Facebook
Catholic social network

Catholic Online on Twitter
Catholic Tweets

Catholic Online on YouTube
Enjoy our videos

Catholic Online on Instagram
Shared Catholic moments

Catholic Online on Pinterest
Catholic ideas style inspiration

Catholic Online Logo

Copyright 2018 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2018 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.