Boston, MA 04/29/2014 (wallstreetpr) – Apple Inc. (NASDAQ:AAPL) plans a major change on its stock this year and that involves a 7-for-1 stock split coming up in June. The company will award an additional six shares on each of its shares currently held.
The stock split will take place on June 2, and the new shares will start trading on June 9. Wall Street is visibly happy with the plans to split Apple Inc stock.
Shares of Apple Inc have gained tremendously in recent times. The latest gains that saw the shares jumping to a new 52-week high last week and early this week were due to the various positive announcements from the company. The key news from Apple Inc. (NASDAQ:AAPL) were the strong earnings in Q22014 that also came on record iPhone sales figures. The company also wowed the market with its huge shares repurchase program as well as the dividend hike.
Moreover, plans to introduce new and refreshed versions of iPhone and other smart products this year have also generated excitement around the stock.
Earnings beat
Apple Inc. (NASDAQ:AAPL) reported profit of more than $10.2 billion in the latest quarter. The huge profit was supported by the sale of more than 43.7 million iPhones across the world. There is still room for the company to make even more big sales this year following its iPhone distribution deal with China Mobile and the planned launch of new products including iWatch and iPhones with larger displays.
The company announced plans to return $90 billion to shareholders between 2014 and 2015. However, it will raise the money through debt issuance. In addition to the shares buyback program, the company intends to pay higher dividend with the new rate being $3.29 per share with plans to review the column on a yearly basis.
New products
Apple Inc. (NASDAQ:AAPL) has a tradition of refreshing its product line after every 12 months. On that note, the company is expected to introduce revamped iPhone line that comes with improved power and display capabilities. That will be in addition to the refreshed MacBook Air that could be out any day this week, featuring a more powerful processor.
