Since 2012, Apple has been buying back its shares at an extraordinary rate, often exceeding $10 billion— and frequently approaching $20 billion— per quarter. Now that its stock has doubled across the last year, why is it continuing to snap up shares?
Since 2012, Apple has been buying back shares at the extraordinary rate of around $10 billion per quarter. A year ago it picked up the pace to around $20 billion per quarter. After a reprieve last winter, the company has resumed its buyback frenzy with its largest-ever quarterly funding: $24 billion in Q2 followed by $17 billion in the most recent June quarter. Here's why. [The original version of this article contained an error regarding the dates of Apple's quarterly buybacks.]
On Thursday, Apple paid its shareholders of record (as of November 13th) a quarterly dividend of $0.63 per share, totaling $3 billion in dividends on its outstanding shares for the quarter, on stock that has appreciated 46.5 percent so far in 2017.
Apple's international borrowing continues to expand to new countries, with the company revealing in a U.S. Securities and Exchange Commission filing on Tuesday that it will offer its first debt offering in Canadian dollars.
Looking to generate more money for its shareholder return program without repatriating foreign cash, Apple has completed a sale of $10 billion in bonds, with underwriters including Deutsche Bank, Goldman Sachs, JPMorgan, and others.
Apple will revisit its capital return program in April, and investment firm Piper Jaffray believes the company will use the opportunity to increase both its quarterly dividend payout and share buyback allotment.
In a filing with the U.S. Securities and Exchange Commission on Thursday, Apple revealed that it has raised 250 billion yen through its first-ever Japanese bond offering, which is the equivalent of $2 billion U.S.
Apple on Wednesday notified the U.S. Securities and Exchange Commission that it is planning yet another bond sale, accruing debt to fund its ongoing quarterly dividend payments and share repurchase program.
Apple on Monday announced a significant expansion of its stock buyback and dividend program that will see the initiative grow to $140 billion from $90 billion, including an 11-percent bump in the quarterly dividend.
Apple is set to announce an update to its capital return program in April, and investment firm RBC Capital Markets believes the company could return some $65 billion to investors annually, creating yet another reason to buy into the company's stock.
On February 12, Apple will pay shareholders of record a quarterly dividend of $0.47 per share, but investors will need to buy shares by February 5th (to have settled ownership of the company's stock by the market's close on February 9) in order to qualify.
Apple is set to borrow cash in euros for the first time in the company's history, taking advantage of record-low interest rates in Europe with what will be some of the lowest-ever interest rates for a corporation.