uploads///

How Apple Continues to Increase Shareholder Value

By

Updated

Apple’s $250 billion share buyback program

Apple (AAPL) stated that it has completed $201.0 billion of its $250.0 billion ongoing capital return program. Taking past returns into consideration, Apple plans to pay shareholders $250.0 billion by the end of March 2018. In fiscal 1Q17, Apple returned $6.0 billion in share repurchases and $3.1 billion through dividends to shareholders.

Apple CFO (chief financial officer) Luca Maestri said, “We returned almost $15 billion to investors during a very busy December quarter for our capital return activities. We paid $3.1 billion in dividends and equivalents. We spent $5 billion on repurchases of 44.3 million Apple shares through open market transactions.”

Article continues below advertisement

Dividend yield to shareholders

While Apple didn’t announce any increase in its quarterly payout, it did declare a dividend of $0.57 per share, payable on February 9, 2017. The company said its capital return program has returned more than $201.0 billion to its shareholders since August 2012. Apple has a dividend yield of 1.8%, compared to 2.1% in fiscal 4Q16 and 2.2% in fiscal 1Q16.

Dividend yields for peer technology (QQQ) companies Hewlett-Packard (HPQ), Western Digital (WDC), and IBM (IBM) were 3.5%, 2.9%, and 3.2%, respectively, as of their last reported quarters.

In the last four years, Apple has acquired more than 15 companies and is looking to add strategic value through those acquisitions.

Advertisement

More From Market Realist