Apple announced today that its Board of Directors granted another significant increase to the company’s capital return program (in line with previous rumours): The iPhone maker plans to utilize a total of $130 billion in cash by the end of next year.
As part of the program, the Board has increased its share repurchase authorization to $90 billion from the $60 billion level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units.
Between August 2012 and March 2014, Apple has spent $66 billion on its capital return program. The company plans to access the public debt market both domestically and internationally to raise a similar amount to the one it did last year.
“We are announcing a significant increase to our capital return program,” said Tim Cook, Apple’s CEO. “We’re confident in Apple’s future and see tremendous value in Apple’s stock, so we’re continuing to allocate the majority of our program to share repurchases. We’re also happy to be increasing our dividend for the second time in less than two years.”
Also, the Board of Directors announced a seven-for-one stock split, which means each Apple shareholder of record at the close of business on June 22 this year will receive six additional shares for every share held on the record date. Trading will begin on a split-adjusted basis on June 9, 2014.