Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

4/24/2014 (2 years 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 (2 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."

---


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


Copyright 2016 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for May 2016
Universal:
Respect for Women: That in every country of the world, women may be honored and respected and that their essential contribution to society may be highly esteemed.
Evangelization: Holy Rosary: That families, communities, and groups may pray the Holy Rosary for evangelization and peace.



Comments


More Business & Economics

Obama brags in face of economic failure Watch

Image of The Obama administration claims the economy is thriving - but what is REALLY going on (TPNN)?

By Kenya Sinclair (CALIFORNIA NETWORK)

We all know "that guy." You know the one - the guy who is obsessed with conspiracy theories and who swears the government is out to get us. Well, according to newly released economic data, "that guy" might be (partially) right. LOS ANGELES, CA (Catholic Online) - U.S. ... continue reading


Yes, there's definitely something wrong with millennials, and here's what it is! Watch

Image of As far as millennials are concerned, the American dream is just that -- you have to be asleep to believe it.

By Marshall Connolly (CALIFORNIA NETWORK)

Across the country, the news is shocking. Over half of the millennials think socialism might be a good thing. Most of them believe the American dream is a myth, and public perception is that something is wrong with them. Why do they just want "free stuff?" LOS ANGELES, ... continue reading


Billionaire Soros warns China is near economic collapse Watch

Image of China's economy may be heading for trouble.

By Marshall Connolly (CALIFORNIA NETWORK)

Billionaire George Soros is sounding the alarm, China is about to go down and the rest of the world could follow. According to Soros, there is a major resemblance between China now and the United States in 2007-2008 just before the U.S. economy entered the Great ... continue reading


IRS issues dire warning before Panama Papers crackdown begins Watch

Image of The Panama Papers detail the tax evasion schemes of thousands of wealthy people around the world.

By Marshall Connolly (CALIFORNIA NETWORK)

The IRS has issued a warning to the rich who have been hiding money offshore - come clean now, before we catch you ourselves. The warning follows the leak of over 11 million pages of documents that detail the private, often hidden financial moves of wealthy people ... continue reading


Obama's Saudi masters order him not to sign 9/11 bill Watch

Image of It's not about the victims, it's about the Saudis.

By David Drudge (CALIFORNIA NETWORK)

Saudi Arabia is about to escalate their economic war with the United States should Congress pass a law that will allow victims of the 9/11  terrorist attacks to sue foreign states. The Obama administration opposes the bill and is lobbying against it. LOS ANGELES, ... continue reading


You won't believe how California's rich spend their money! Watch

Image of Top 1 percent pays nearly half of all California taxes (istockphoto).

By Kenya Sinclair (CALIFORNIA NETWORK)

When you think of California, images of sandy beaches, sun-kissed skin and Hollywood stars flash through your mind - and you're not wrong! California's rich enjoy all the sunny state has to offer - but at what cost? LOS ANGELES, CA (Catholic Online) - According to ... continue reading


Tesla KILLS American car industry in just 3 days. GOOD! Watch

Image of The Tesla Model 3 will sell for an average price of $42,000. Subsequent competition and models will reduce future prices even further.

By Marshall Connolly (CALIFORNIA NETWORK)

Tesla has blown away all predictions, selling over 276,000 pre-orders of their affordable Model 3 electric car, within 72 hours of going live. The massive public interest reveals a major shift in public preferences and should send shockwaves through the auto industry. ... continue reading


You won't believe what JUST happened to Walmart! Watch

Image of What does Walmart's revenue drop mean (WalmartDid).

By Kenya Sinclair (CALIFORNIA NETWORK)

The discount giant has received its first dip in revenue since its inception in 1996. Can the drop signify the beginning of the end? LOS ANGELES, CA (Catholic Online) - The digital age has marked a permanent shift in the way humanity perceives the world.One smartphone ... continue reading


Why Democratic Socialism is coming to America, whether you like it or not, and what you can do about it (but won't) Watch

Image of Presidential hopeful Bernie Sanders is a self-described democratic socialist. His movement is popular with millennials who are coming of age.

By Marshall Connolly (CALIFORNIA NETWORK)

America is in more trouble than people realize and here's why. The middle class is becoming poor, and as the ranks of the poor grow, our national politics will change. LOS ANGELES, CA (California Network) - The United States is changing and many people are having a ... continue reading


You'll never believe what the U.S. government is doing with $917 billion Watch

Image of How much do YOU owe (Shutterstock)?

By Kenya Sinclair (CALIFORNIA NETWORK)

How often do you swipe your credit card without considering your credit limit? When you don't have funds in your checking account, do you turn to credit cards to cover groceries, outings or bills? Have you considered what that credit card debt can do on a larger scale? ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

the FEED
by Catholic Online

Daily Readings

Reading 1, First Corinthians 15:1-8
1 I want to make quite clear to you, brothers, what the message of the ... Read More

Psalm, Psalms 19:2-3, 4-5
2 day discourses of it to day, night to night hands on the ... Read More

Gospel, John 14:6-14
6 Jesus said: I am the Way; I am Truth and Life. No one can come to the ... Read More

Saint of the Day

Saint of the Day for May 3rd, 2016 Image

St. James the Lesser
May 3: St. James the Less, the author of the first ... Read More