Apple’s $300 Billion Share Buyback Program

Apple (AAPL) has completed $211.2 billion of its $250.0 billion ongoing capital return program and extended its capital return program by $50.0 billion.

Adam Rogers - Author

May 9 2017, Updated 7:35 a.m. ET


Apple continues to increase shareholder value

Apple (AAPL) has completed $211.2 billion of its $250.0 billion ongoing capital return program. It also extended its capital return program by $50.0 billion for the next 12 months.

Taking past returns into consideration, Apple plans to pay shareholders $300.0 billion by the end of March 2019. In fiscal 2Q17, Apple returned $7.0 billion in share repurchases and $3.2 billion through dividends to shareholders.

Apple’s CFO (chief financial officer) Luca Maestri said, “We returned over $10 billion to investors over the quarter. We paid $3 billion in dividends and equivalents and we spent $4 billion on repurchases of 31.1 million Apple shares through open market transactions.”

Apple has more than $256.0 billion in cash reserves. More than $239.0 billion, or 93.0%, is held at overseas locations. Apple might bring back funds to the United States considering the highly awaited tax structure changes.

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Dividend yield to shareholders

While Apple didn’t announce any increase in its quarterly payout, it did declare a dividend of $0.63 per share, payable on May 11, 2017. Apple has a dividend yield of 1.7% compared to 2.4% in fiscal 2Q16 and 1.7% in fiscal 1Q17.

Dividend yields for peer technology (QQQ) companies Hewlett-Packard (HPQ), Western Digital (WDC), and International Business Machines (IBM) were 3.1%, 2.5%, and 3.8%, 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.


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