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Update: Apple CEO Tim Cook held a conference call with CFO Peter Oppenheimer to explain the company’s decision to issue a dividend and initiate a share repurchase program.Cook said that the dividend would be great for current shareholders, while at the same time helping to expand the base of shareholders. Both repeatedly referred to the dividend as one of the largest by any company.
They said the share buybacks are to neutralize dilution of the shares by stock option packages for employees.
Cook emphasised at the start of the call, and throughout, that Apple’s primary focus is on innovative products. He believes Apple’s future is bright, and doesn’t think that the cash it is spending on dividends or buybacks will limit the company in any way.
We live blogged the call, and our notes are below.
Original: Apple is hosting a conference call on its decision to initiate a dividend and share buyback plan.
We’ll be live blogging the call right here.