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March 20, 2012

Payback time at Apple

Filed under: management, marketing — Tags: , , , — ManInBlack @ 4:23 am

With more money sitting in their bank account than some companies are worth, Silicon Valley giant Apple finally decided it was time to pay a dividend.

Tim Cook, CEO of the maker of iPhones, iPads, iPods and Mac computers announced Monday the company would be using some of its $98 billion cash on hand to pay out a dividend for the first time since 1995, as well as buy back stock.

In an industry where paying out a dividend is sometimes seen as a sign that a company is past its innovative best, Cook insisted the $2.65 quarterly dividend will still leave plenty of cash for the company to develop new products, as well as giving it a war-chest to use for takeover opportunities.

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