Apple announces dividend and share buyback

Apple is finally putting its $97.6 billion pile of cash to work, introducing a quarterly dividend of $2.65 per share and starting a $10bn share buyback program.

epa03135899 Apple enthusiast Mohammed Jawad from Dubai - United Arab Emirates, stopped to take a photo of him self and the Apple clad facade of the Yerba Buena Center, where Apple is holding a special event to introduce the newest iPad and other products in  San Francisco, California, USA 07 March 2012.  EPA/PETER DaSILVA *** Local Caption ***  03135899.jpg
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NEW YORK // Apple is finally putting its pile of cash to work, introducing a quarterly dividend of $2.65 per share and starting a $10 billion share buyback program.

Apple says the dividend will start in its fiscal fourth quarter, which begins July 1. The buybacks will begin in its next fiscal year, which starts Sept. 30.

Apple is sitting on $97.6 billion in cash and securities. For years, it has resisted calls to reward shareholders with some of that money. Since the death of CEO Steve Jobs, management has signaled that it's been considering options for the money.

The expectation of a dividend has already helped send the stock up 37 percent since Apple's latest earnings report. In pre-market trading, the shares touched a record level of $600.23, up 2.5 percent from Friday's close.