Looking at Apple’s Share Repurchase Activity

Apple returns value to its shareholders

Apple (AAPL) has been consistently returning value to its shareholders and is the only stock among the so-called FAANG stocks that rewards its investors through both dividends and share buybacks. The other stocks that are part of FAANG, namely Facebook (FB), Amazon (AMZN), Netflix (NFLX), and Google (GOOG), do not pay any dividends to their shareholders.

The company has returned nearly $300 billion to its shareholders through dividends and repurchases between fiscal 2012 and the fiscal third quarter of 2018.

Looking at Apple’s Share Repurchase Activity

Share repurchases and dividends

In its most recently reported fiscal third quarter, which ended in August, the iPhone maker had more than $244 billion in cash and equivalents and purchased an additional $20 billion in stock buybacks. In the fiscal second quarter, the company made a massive $23.5 billion in share repurchases, whereas it repurchased $10.1 billion in the fiscal first quarter. In fiscal 2017 and fiscal 2016, Apple repurchased shares worth $33 billion and $29 billion, respectively. The company returned $143.5 billion between fiscal 2012 and fiscal 2015.

Apple also paid cash dividends of $12.2 billion in fiscal 2016, $12.8 billion in fiscal 2017, and $10.2 billion in the first nine months of fiscal 2018. The company paid nearly $35.7 billion in dividends between fiscal 2012 and fiscal 2015. In the latest quarter, Apple paid a cash dividend of $0.73 per share on August 16.

Apple is a growing stock

Apple has been on a growth trajectory since it announced its fiscal third-quarter results and beat earnings and revenue estimates. Last month, Apple became the most valuable publicly traded company in the world when it hit a market cap of over $1 trillion.

In the fiscal third quarter, Apple reported sales growth of more than 17% YoY (year-over-year) to $53.3 billion on the back of shipments of 41.3 million iPhones, 11.55 million iPads, and 3.7 million Macs. Apple expects its fiscal 2018 revenue to be in the range of $51.5 billion–$53.5 billion.

Apple recently announced three new iPhone models: the iPhone Xs, the iPhone Xs Max, and the iPhone XR. According to estimates from Goldman Sachs, the iPhone XR will be $749, the iPhone Xs will be $999, and the iPhone Xs Max will be $1,099.