Yesterday, March 19, Apple shared their new plan to implement stock buy backs and dividends for their investors. The tech goliath has recently found its net worth climbing to almost 100 billion dollars, making it the most profitable publicly traded company in the world.
National Public Radio reported yesterday that Apple plans to move nearly 60 percent of its revenues to off shore accounts in the year. This move, NPR says, keeps Apple from having to pay out large amounts of taxes to the United States Government.
The Star Press reported that the company will pay nearly 10 billion back to its investors in the first year, but with a projected 70 to 85 billion dollars being added throughout the rest of the year, Apple can afford it.
Former CEO Steve Jobs had continually halted the possibility of a major dividend in the past. He had instead suggested using the excess of wealth to acquire companies and materials needed to continue innovating new products. The proposed plan, green lighted by the new CEO Tim Cook, marks a new business strategy for the company. Cook feels it will only strengthen bonds between the company and its investors.
“On Monday, Cook said that, with as much cash as Apple has on hand, a dividend won’t restrain the company’s options.” Reports the Star Press.
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