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AAPL: Apple starts share buybacks

Apple (AAPL) announced a $10 billion share buyback and a $2.65-per-share quarterly dividend to be paid out going forward. AAPL buybacks are starting out relatively small, but they have room to raise the buyback amount.

By Joshua M. Brown, Guest blogger

This morning Apple ($AAPL) announced a $10 billion share buyback and a $2.65-per-share quarterly dividend to be paid out going forward - a yield of roughly 1.77% at today's prices around $600.聽 Apple was smart to start relatively small, it gives the company room to raise both the buyback amount (should the stock get hit) and the dividend on a regular basis.

The company sits on over $100 billion in cash, equal to roughly a hundred dollars a share.聽 It is also generating an obscene amount of new cash, $16 billion in the last quarter alone.

Here's CEO Tim Cook via MarketWatch:

This was pretty much what I expected although the yield is slightly below the 2.5% The Street "wanted".聽 Apple does a great job at pretending it cares about what Wall Street wants.

Move along folks, nothing to see here, business as usual for the greatest company on earth.