Apple now has $145 billion in cash and it needs to do something about it. That’s why Apple CEO Tim Cook just announced that the company will initiate a stock buyback. It means that Apple will used part of its cash to repurchase existing shares, taking them out of the market, increasing existing stockholders’ shares. That investment will go directly to existing investors in the form of a dividend.
Tim Cook announced this program just after reiterating that Apple’s culture is what sets the company apart.
“We have a tremendous culture of innovation,” Cook said. “It’s the same culture that bought the iPhone and the iPad,” he continued.
Last year, Apple announced that it would spend $45 billion over multiple years to give as a dividend. It is more than doubling this program to $100 billion. The $55 billion that were set aside today will be used for the share repurchases.
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