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Apple announces 7:1 split, ups dividend and buyback plan

  • Along with its FQ2 results, Apple (AAPL) has announced a 7:1 stock split. Split-adjusted trading will start on June 9.
  • The company's buyback authorization has been raised by $30B to $90B, and its quarterly dividend hiked by 8% to $3.29 (2.5% yield).
  • Shares remain halted. They'll resume trading at 4:45PM ET.
Comments (53)
  • MajorDude
    , contributor
    Comments (252) | Send Message
     
    Clearly, this is a company that is going out of business.
    23 Apr, 04:40 PM Reply Like
  • First1billion
    , contributor
    Comments (84) | Send Message
     
    Who are you? I just released all day worth of stress.
    23 Apr, 04:54 PM Reply Like
  • no one really
    , contributor
    Comments (136) | Send Message
     
    Apple is doomed, iPod sales down _again_.
    23 Apr, 04:56 PM Reply Like
  • First1billion
    , contributor
    Comments (84) | Send Message
     
    there is majordude and there is no one really. Some kind of coincidence.
    23 Apr, 04:59 PM Reply Like
  • ispank
    , contributor
    Comments (616) | Send Message
     
    Apple is broke, Apple serious is in debt.
    23 Apr, 04:43 PM Reply Like
  • phxcrane
    , contributor
    Comments (416) | Send Message
     
    If you really believe what u wrote. Please don't invest your own money.
    23 Apr, 04:45 PM Reply Like
  • First1billion
    , contributor
    Comments (84) | Send Message
     
    Is it ok with other's ?
    23 Apr, 04:52 PM Reply Like
  • ispank
    , contributor
    Comments (616) | Send Message
     
    @phxcrane: I was just kidding, I hate to confess this, after long AAPL. I have sold all of my shares one day after earnings reports, now I kick myself. Ouch!
    28 Apr, 09:06 PM Reply Like
  • AnecdotalEmpiricist
    , contributor
    Comments (79) | Send Message
     
    Not exactly the blowout lots of folks are claiming it to be, but $AAPL has definitely maximized their oppty here. Hats off to Tim Cook & team.
    23 Apr, 04:43 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1495) | Send Message
     
    how is a beat of $1.44 not a blow out?
    23 Apr, 04:53 PM Reply Like
  • financeminister
    , contributor
    Comments (755) | Send Message
     
    the single digit dividend hike should be a clue for something... nevertheless, will hold as a value investment. Was hoping for some financial engineering to make up for the lack of growth or new products
    23 Apr, 04:47 PM Reply Like
  • tmoney094
    , contributor
    Comments (159) | Send Message
     
    Yeah, the 8% dividend increase is pretty weak for such a strong financial company.
    23 Apr, 04:49 PM Reply Like
  • financeminister
    , contributor
    Comments (755) | Send Message
     
    I think they're careful to consider long term implications of double digit hikes as most of the cash is held outside the US and probably prefer buybacks.
    23 Apr, 04:55 PM Reply Like
  • aardvark3
    , contributor
    Comments (438) | Send Message
     
    They can't wrap their heads around the fact that Apple is back...yet. The visionless will all crawl back on the bandwagon over the next few months.

     

    It's a fickle crowd.
    23 Apr, 05:17 PM Reply Like
  • hobart16
    , contributor
    Comments (328) | Send Message
     
    On the conference call they promised annual increases in the dividend going forward.
    23 Apr, 09:11 PM Reply Like
  • JasonMiles
    , contributor
    Comments (139) | Send Message
     
    You obviously haven't been paying attention to what Apple has been doing and the hires they've made and the R&D $ they've put into the company. Launching a new product line is not something that is easy. Apple innovates,all the others copy. I have no doubt that new products are coming and apple will be back at $700 faster than most think
    29 Apr, 10:39 AM Reply Like
  • JasonMiles
    , contributor
    Comments (139) | Send Message
     
    I heard that Apple is going out of business. The will be liquidating the company very soon. I also have a bridge to sell you in Brooklyn
    23 Apr, 04:47 PM Reply Like
  • like chocolate
    , contributor
    Comments (11) | Send Message
     
    Haha, the worlds most valuable company just got even more valuable.
    23 Apr, 04:49 PM Reply Like
  • jdadyfinance
    , contributor
    Comments (112) | Send Message
     
    Ha ha ha stop no really .... they beat by 1.44 c'mon man !
    23 Apr, 04:49 PM Reply Like
  • financeminister
    , contributor
    Comments (755) | Send Message
     
    lol, first time I'm seeing AAPL up by ~8% after hours since the 10% or something collapse in Jan 2013... I swear I was expecting a collapse even if they beat earnings and had all the great news in the world..... I guess wallstreet really does love financial engineering.
    23 Apr, 04:51 PM Reply Like
  • Johnwoods41
    , contributor
    Comments (123) | Send Message
     
    Is the 7.1 stock split a hint from apple we should be trading back at $700, new shares at nice round $100 ??
    23 Apr, 04:52 PM Reply Like
  • milehr
    , contributor
    Comments (493) | Send Message
     
    Yep, it is a floor.
    23 Apr, 04:59 PM Reply Like
  • Safeguy
    , contributor
    Comments (4) | Send Message
     
    Apple shares at $100? They'll fly off the shelves! Look out June 9th!
    24 Apr, 11:20 AM Reply Like
  • Macnor
    , contributor
    Comments (66) | Send Message
     
    Funny to read Seeking Alpha

     

    What a waste of time
    23 Apr, 04:53 PM Reply Like
  • wedmorn
    , contributor
    Comments (71) | Send Message
     
    I like it!
    23 Apr, 04:54 PM Reply Like
  • duhaus
    , contributor
    Comments (320) | Send Message
     
    This is getting interesting . .
    23 Apr, 04:55 PM Reply Like
  • financeminister
    , contributor
    Comments (755) | Send Message
     
    AAPL stock, why aren't you collapsing? I'm so used to a collapse after hours post earnings.
    23 Apr, 04:56 PM Reply Like
  • Hoopono
    , contributor
    Comments (241) | Send Message
     
    Got some green AAPLs, going to make me some pie!
    23 Apr, 04:58 PM Reply Like
  • banmate6
    , contributor
    Comments (876) | Send Message
     
    I've been buying AAPL for several years. It simply performs, beating the S&P500 by a good clip. And to think, AAPL is undervalued even as a premium blue chip. There is alpha in AAPL, not GOOG nor the S&P500 right now.

     

    Let's put it this way. Social, mobile, and cloud computing continue to evolve. The internet of things is another emerging factor here. Across all of this, AAPL devices and applications are extremely well positioned.

     

    $160 billion in cash. Massive cash flow. World class R&D. World class partnerships with companies like MSFT. Like I said, what's not to be bullish about?

     

    I see the current valuation as yet another manifestation of the irrationality of the herd and, also, of a lot of wall street interests. I still don't get why pundits see AAPL through a prism of negativity.

     

    It's okay. I'm just waiting patiently. Inevitably, price tracks earnings.
    23 Apr, 05:00 PM Reply Like
  • manocas
    , contributor
    Comments (39) | Send Message
     
    and they're just warming up... the large screen iPhones are coming...
    23 Apr, 05:01 PM Reply Like
  • tipper 1
    , contributor
    Comments (124) | Send Message
     
    and the mobile payment platform...bye bye Pay Pal
    23 Apr, 07:31 PM Reply Like
  • jdadyfinance
    , contributor
    Comments (112) | Send Message
     
    Let's see the avg money mkt fund pays what, less than 1% and the historical return for equities is 12%. So on what planet is 8% not a significant increase? 2.5% yield on the stock is higher than the avg yield on the S&P 500. The stock split which is nonsense is aimed directly at investors who see a 500 stock and think its expensive. APPL is cheap and the stock split will draw in a huge swath of this investor group. The stock split is a game changer.
    23 Apr, 05:02 PM Reply Like
  • mathari
    , contributor
    Comments (190) | Send Message
     
    This was a strong report. Look for the company to become listed on the DOW before the end of the year. We could see $700 share price by mid year before the 7 to 1 split. Only concern is tablets. Apple had promised tablets would replace PCs and its not happening yet. We need a smaller yet more powerful tablet.

     

    Well done.
    23 Apr, 05:03 PM Reply Like
  • Mortonk
    , contributor
    Comments (169) | Send Message
     
    Fine with the split, more affordable for smaller investors and decreases the perception of volatility from the 5-600 range which was a killing for stock manipulators. No new products expected yet anyway but just setting the scene for later this year when hopefully the release of something new....which we have been waiting on for ages....!
    23 Apr, 05:05 PM Reply Like
  • DanoX
    , contributor
    Comments (2647) | Send Message
     
    The split is well timed right before a big new device from Apple. In the fall 2014
    23 Apr, 06:38 PM Reply Like
  • Chompiras
    , contributor
    Comments (12) | Send Message
     
    I love apples.
    23 Apr, 05:08 PM Reply Like
  • bjamesh
    , contributor
    Comments (108) | Send Message
     
    We can see once again that Apple is not a shareholder friendly company and would be a stock to short.

     

    Owait ....
    23 Apr, 05:14 PM Reply Like
  • jdadyfinance
    , contributor
    Comments (112) | Send Message
     
    Stock splits do not make stocks more affordable it's a mind game !
    23 Apr, 05:16 PM Reply Like
  • financeminister
    , contributor
    Comments (755) | Send Message
     
    If the herd jumps onto a stock because the ticker symbol *sounds* like a company being bought buy a bigger company (eg, Google buying Nest and many other recent ones), you can't underestimate how many investors would fall for this (kind'a like the same mindset that tells someone that a $5 stock can make them rich faster than a $100 stock all else being equal)

     

    Which brings me to another point... they say that the last leg of a bull cycle is when the retail crowd joins the party right before the beer is out.

     

    hmmm....
    23 Apr, 05:28 PM Reply Like
  • Yesterdays_news
    , contributor
    Comments (1328) | Send Message
     
    I assume we still get to vote with these new shares? No class C stock Shenanigans like Google played?

     

    I hope Apple gets serious with services like banking, TV, and healthcare. Also, that would be sweet if they bought Yahoo/Bing search for more ad revenue and better search services.
    23 Apr, 05:23 PM Reply Like
  • altaire4
    , contributor
    Comments (110) | Send Message
     
    Love it .... the 7 for 1 Split coming in June will cause an avalanche of investment in AAPL !
    23 Apr, 05:26 PM Reply Like
  • jakexb
    , contributor
    Comments (71) | Send Message
     
    Apple needs some mind games to give a psychological reset. It's been weighed down below value by sentiment and psychology for too long.
    23 Apr, 05:58 PM Reply Like
  • Justfixit
    , contributor
    Comments (15) | Send Message
     
    A crazy good day for long investors.
    23 Apr, 06:21 PM Reply Like
  • John Court
    , contributor
    Comments (143) | Send Message
     
    The apple April 25/550 calls I almost bought this am for $2.5k would have earned me $33k. Good on those who took the gamble.

     

    Sorry for Michael and the other diehard aapl shorts. This is a bitter pill for them. Not sorry for CNBC, Bloomberg and all the other talking heads that made fools of themselves by getting it all wrong.

     

    The 7-1 split will bring in a raft of retail buyers and that will be good for everyone, but I doubt that alone will account for the rise of the stock going forward. IMO, anticipated product announcements will do more in that regard.

     

    Congrats longs!
    23 Apr, 06:28 PM Reply Like
  • Peteresmond
    , contributor
    Comments (87) | Send Message
     
    The dividend increase is prudent and, therefor, good when coupled with the stock buy-back and the split.
    Looks like the rest of this year should be stellar for the AAPL bulls and not so good for the perpetual bears ~~ where is Hedgeye's Kaiser when the bears need him?
    Oh well, maybe AAPL gets included in the DOW, guess that'll show those long bulls who's running the table!
    23 Apr, 06:41 PM Reply Like
  • Patience29
    , contributor
    Comments (177) | Send Message
     
    What say thee now, Michael Blair?
    23 Apr, 08:22 PM Reply Like
  • todaystheday
    , contributor
    Comments (41) | Send Message
     
    7 to 1! Cook and company just made a brilliant move. 7 to 1 right before the introduction of the "Exciting" new products of later 2014 and 2015. The move to the upside could now be dramatic. Apple will still be the same undervalued stock it was at $525. But, the room for the big upside drive now became so much easier. For the big boys and girls who have hung in there, you are about to be rewarded.
    23 Apr, 08:55 PM Reply Like
  • hobart16
    , contributor
    Comments (328) | Send Message
     
    Increasing the number of shares 7 fold will make the average daily volume something like 70 million shares. Option lots will be more manageable.

     

    The stock buy back looks more impressive. At $30 billion at an ASP of $80 (tonight's price) that is taking 375 million shares out of circulation.
    23 Apr, 09:21 PM Reply Like
  • theantiantihero
    , contributor
    Comments (105) | Send Message
     
    Great news. The split will bring down the share price, so it will be more attractive to small investors. The buyback will raise EPS AND they hiked the Dividend, too. Just wish I had bought more when it dropped last year.
    23 Apr, 09:42 PM Reply Like
  • ctownzoo
    , contributor
    Comments (55) | Send Message
     
    Michael Blair is not going to like this
    23 Apr, 11:29 PM Reply Like
  • ultraz2@aol.com
    , contributor
    Comments (485) | Send Message
     
    Great news for Apple shareholders. Next week we will be 1/3 done with Q3 and rapidly moving to Q4 and new products, as well as increased China Mobile 3 and 4G Apple sales. Apple stock is going to go threw the roof.
    24 Apr, 01:04 AM Reply Like
  • Warren Buffet007
    , contributor
    Comments (953) | Send Message
     
    This is perfect a split!.
    24 Apr, 03:08 AM Reply Like
  • Warren Buffet007
    , contributor
    Comments (953) | Send Message
     
    I'm very sorry for Mr.Blair.
    24 Apr, 03:08 AM Reply Like
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