Business news

Apple announces dividend, buyback


NEW YORK — Apple said Monday it will reward its shareholders with a dividend and a stock buyback program.

Apple said it will pay a quarterly dividend of $2.65 per share, starting in its fiscal fourth quarter, which begins July 1. The dividend works out to $10.60 annually, or 1.8 percent of the current stock price.

The dividend opens up ownership of Apple shares to a wider range of stock mutual funds, potentially boosting the stock price in the long term. Many “value-oriented” stock funds are not allowed to buy stocks that don’t pay dividends

Apple said the $10 billion share buyback program will begin next fiscal year, which starts Sept. 30, and runs for three years.

Securities sale nets profit for Treasury

WASHINGTON — The Treasury Department said on Monday it made a $25 billion profit on sales of mortgage-backed securities acquired during the financial crisis, part of its ongoing efforts to wind down taxpayer-financed bailout programs.

The sales were the latest indication the multiple programs the government and Federal Reserve initiated to bail out the financial sector may turn out to be less costly than originally feared.

The Treasury bought $225 billion of MBS in 2008 and 2009 in an effort to keep the mortgage market from freezing up as private investors fled. The $250 billion it reaped from the investment reflected both principal and interest.