Apple Announces $100 Billion Share Repurchase Program

[MacRumors]

During today's second quarter earnings release, Apple said that it is launching a new share repurchase authorization of $100 billion, with a 16 percent increase in quarterly dividend.

Apple expects the execution of its previous $210 billion share repurchase authorization to wrap up by the end of the current quarter, three quarters earlier than originally expected. From Apple CEO Tim Cook:

Recent corporate tax reform makes it possible for us to executive our program more efficiently. Given our strong confidence in Apple's future, we're announcing a significant update. Apple's Board approved an additional $100 billion share repurchase authorization, as well as a 16 percent increase in quarterly dividends, effective with the next divided later this month.

Following tax reform in the United States that will allow Apple to repatriate its overseas cash at a lower tax rate, Apple has said that it wants to reduce its net cash balance to zero, a goal it will accomplish through share buybacks, increased dividend payouts, acquisitions, and investments into research and development.

Apple CFO Luca Maestri said that Apple wants to maintain the cash it needs to fund day to day operations, invest in the future, and provide the flexibility it needs to respond strategically to opportunities that arise.

Maestri also said that Apple plans to execute its share buyback program thoughtfully, efficiently, and at a fast pace. Apple will provide updates on the program at the end of every quarter.

After the news of Apple's $100 billion share buyback program, Apple stock is up 4 percent in aftermarket trading.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Announces $100 Billion Share Repurchase Program

 

[azentropy]

Disappointed with the small bump in dividend. Yes Apple is one of the large dividend paying companies in total $ amount, however in overall yield they are pretty lousy (this kicks them up to 1.7% annual yield base on current price).

 

[hlfway2anywhere]

Investors have watched Apple closely because they have over $250 billion offshore that they can bring into the US cheaply now, because of the GOP corporate tax reduction from 35% to 15%. The GOP assured us that this gigantic inflow of money would trickle down to workers in the form of wage increases and bonuses. Knowledgeable economists said this would not happen. So what is Apple doing with their cash? Lowering prices? Raising salaries on employees at Apple stores? Giving iPads to schools? No. Apple just announced a 16% increase in their dividend and a $100 billion buyback of their own stock. This is a HUGE windfall for Apple stockholders. The rich are getting richer. It is good to pause from time to time and reflect on how dishonest the Republicans are, and how naive their supporters are to keep believing the lies.

 

[keysofanxiety]

Investors have watched Apple closely because they have over $250 billion offshore that they can bring into the US cheaply now, because of the GOP corporate tax reduction from 35% to 15%. The GOP assured us that this gigantic inflow of money would trickle down to workers in the form of wage increases and bonuses. Knowledgeable economists said this would not happen. So what is Apple doing with their cash? Lowering prices? Raising salaries on employees at Apple stores? Giving iPads to schools? No. Apple just announced a 16% increase in their dividend and a $100 billion buyback of their own stock. This is a HUGE windfall for Apple stockholders. The rich are getting richer. It is good to pause from time to time and reflect on how dishonest the Republicans are, and how naive their supporters are to keep believing the lies.

Well, that escalated quickly.

 

[star_nerdy]

Well, that escalated quickly.

Of course it escalated quickly. We are talking about a tax cut that promised Americans all kinds of wonderful things and that it would grow the economy.

The tax cuts were never designed to grow the economy. Tax cuts were designed to give the rich more money. If we wanted to grow the economy, we could have tied tax cuts to investment in our country. For example, if you want a tax cut, show you’re speeding up hiring. If you want a tax cut, show you’re building a factory.

The same thing happened under Bush when he did a tax holiday in 2004. Job growth was promised under Bush. Instead, companies repatriated money, cut jobs, and dis stock buy backs.

https://www.cnbc.com/2017/04/26/wha...ompanies-got-a-break-on-overseas-profits.html

 

[Scottsoapbox]

Investors have watched Apple closely because they have over $250 billion offshore that they can bring into the US cheaply now, because of the GOP corporate tax reduction from 35% to 15%. The GOP assured us that this gigantic inflow of money would trickle down to workers in the form of wage increases and bonuses. Knowledgeable economists said this would not happen. So what is Apple doing with their cash? Lowering prices? Raising salaries on employees at Apple stores? Giving iPads to schools? No. Apple just announced a 16% increase in their dividend and a $100 billion buyback of their own stock. This is a HUGE windfall for Apple stockholders. The rich are getting richer. It is good to pause from time to time and reflect on how dishonest the Republicans are, and how naive their supporters are to keep believing the lies.

You realize anyone can buy stock right? Even partial shares? Maybe you should do that instead of the next thousand dollar phone that is marginally different than the one you own and let go of some of this bitterness.

 

[Metatron]

Investors have watched Apple closely because they have over $250 billion offshore that they can bring into the US cheaply now, because of the GOP corporate tax reduction from 35% to 15%. The GOP assured us that this gigantic inflow of money would trickle down to workers in the form of wage increases and bonuses. Knowledgeable economists said this would not happen. So what is Apple doing with their cash? Lowering prices? Raising salaries on employees at Apple stores? Giving iPads to schools? No. Apple just announced a 16% increase in their dividend and a $100 billion buyback of their own stock. This is a HUGE windfall for Apple stockholders. The rich are getting richer. It is good to pause from time to time and reflect on how dishonest the Republicans are, and how naive their supporters are to keep believing the lies.

I take it you are disappointed that the CEO of the world’s most valuable company, who supported Hillary Clinton, is not meeting your ideological expectations? Likewise, it appears an Apple board member that won a Presidential popular vote as a democrat who also opposes Trump will not make your Christmas card list either.

While this matter is not a right or left issue (but you care to make it one), than blame your own party that manages this company and hold them responsible. If you would like to take a realistic approach, as the Apple board has, invest and stop complaining. You will never get “rich” demanding another's earned money.

 

[budselectjr]

You realize anyone can buy stock right? Even partial shares? Maybe you should do that instead of the next thousand dollar phone that is marginally different than the one you own and let go of some of this bitterness.

Along with all the pension and mutual funds that own Apple.

 

[Awfisch]

Investors have watched Apple closely because they have over $250 billion offshore that they can bring into the US cheaply now, because of the GOP corporate tax reduction from 35% to 15%. The GOP assured us that this gigantic inflow of money would trickle down to workers in the form of wage increases and bonuses. Knowledgeable economists said this would not happen. So what is Apple doing with their cash? Lowering prices? Raising salaries on employees at Apple stores? Giving iPads to schools? No. Apple just announced a 16% increase in their dividend and a $100 billion buyback of their own stock. This is a HUGE windfall for Apple stockholders. The rich are getting richer. It is good to pause from time to time and reflect on how dishonest the Republicans are, and how naive their supporters are to keep believing the lies.

https://www.apple.com/newsroom/2018/01/apple-accelerates-us-investment-and-job-creation/

 

[firewood]

You realize anyone can buy stock right? Even partial shares? Maybe you should do that instead of the next thousand dollar phone that is marginally different than the one you own and let go of some of this bitterness.

Or even better yet, donate your capital gains and AAPL dividends to your favorite charity, or hire someone, or give them a raise. You can put your own money where your mouth is, if you really think that’s the proper thing to do with any corporate tax windfalls.

 

[groovyd]

Was hoping for a larger dividend increase. Here's to hoping the share buyback helps boost the share price long term and buffer it from speculator instability.

 

[ActionableMango]

So what is Apple doing with their cash?

Well, it's right in the article:

1. share buybacks
2. dividend payouts
3. acquisitions
4. investments R&D

As for #1 and #2, there's nothing wrong with that. First of all, it is natural for shareholders to get some of the massive profit--that's the whole point. We aren't shareholders to watch the money sit offshore doing nothing. Secondly, shareholders are not somehow magically limited to the rich people getting richer, as you state. For example, I'm middle class, I drive a 12-year old Kia, and yet I own Apple stock. Another example, mutual funds invest in tech and Apple, so many people's retirement funds, city/state pensions, etc will also benefit. If you have retirement savings in a mutual fund or a pension, you might have Apple stock and not even know it. So the middle class and almost certainly even your state's pension is also getting richer from this. Especially now since more and more governments are looking for environmentally positive companies to invest in for their pension funds.

#3, which you completely ignored, will make Apple stronger and better for its owners and customers.

#4, which you also ignored, means we get to do those investments and R&D in the USA, which will mean more jobs and money spent in the USA. Keeping it offshore makes it more tempting to do the investments and R&D wherever it is instead of here. Which means more jobs and more money spent outside of the USA instead of in it.

 

[IJ Reilly]

You realize anyone can buy stock right? Even partial shares? Maybe you should do that instead of the next thousand dollar phone that is marginally different than the one you own and let go of some of this bitterness.

I look at reasoning of this kind and can only shake my head and wonder, wonder how anyone can miss a point by such a huge distance. As a member of the investor class myself (that is, one whose income comes predominantly from unearned sources), I could say that these tax cuts were not designed to overwhelmingly benefit people in my situation, instead the wider population that is much more in need. I could say that, but it wouldn't actually be true.

 

[69650]

What a shocking waste of money. They’re just making rich people even richer rather than adding any value to the company.

 

[dumastudetto]

Was hoping for a larger dividend increase. Here's to hoping the share buyback helps boost the share price long term and buffer it from speculator instability.

I'm not unhappy. I'm definitely confident what Apple is doing will pay off for investors.

 

[SuperCachetes]

Investors have watched Apple closely because they have over $250 billion offshore that they can bring into the US cheaply now, because of the GOP corporate tax reduction from 35% to 15%. The GOP assured us that this gigantic inflow of money would trickle down to workers in the form of wage increases and bonuses. Knowledgeable economists said this would not happen. So what is Apple doing with their cash? Lowering prices? Raising salaries on employees at Apple stores? Giving iPads to schools? No. Apple just announced a 16% increase in their dividend and a $100 billion buyback of their own stock. This is a HUGE windfall for Apple stockholders. The rich are getting richer. It is good to pause from time to time and reflect on how dishonest the Republicans are, and how naive their supporters are to keep believing the lies.

You are conflating political motive with corporate motive, and believe it or not, they are not always identical, even if they have similar results.

Firstly, yes, the GOP lied to you about the whole "trickle-down" boondoggle. Again. Surprise!

Secondly, Apple positions itself as one of the most humanist and charitable corporate behemoths in the world, and they may very well be. That has nothing to do with legislation, taxation, or whether or not they play by the rules of the constantly-changing capitalist game. Or whether or not they follow through and validate the GOP lies you were told. They are doing what corporations do - make money for shareholders. As a shareholder, I expect this and thank them for it. If they want to lower prices or raise wages, that's fine - and it will earn them a lot of kudos from dilettante activists. But even though I'm a flaming, tree-hugging liberal at heart, between you and me, that's not why I bought their stock.

Finally, I guess "rich" is relative. Does "rich" mean having a roof over your head? Clean drinking water? Indoor plumbing? While Apple may have gigantic economic sway around the world, there are more sharply-focused and effective means of providing those things to the less-fortunate if it's where your passion directs you. I don't expect Apple to directly change the world in those ways. I expect them to raise my dividend, increase the share price, and behave in a manner that is socially and environmentally responsible within the limits of their purview, so that I may have more potential to change the world in the way I personally see fit. I see them doing that. And I am far from "rich" by first-world standards, but I will take the share price increase as it comes, and hold onto the stock.

 

[msephton]

I didn't know executive was a verb.

 

[groovyd]

I'm not unhappy. I'm definitely confident what Apple is doing will pay off for investors.

Really I just wanted to retire earlier and live off the dividends alone. If they would have doubled the dividend that might have become my immediate reality

 

[IJ Reilly]

I didn't know executive was a verb.

Seems to be a transcription error. The word was probably execute.

 

[Wanted797]

Investors have watched Apple closely because they have over $250 billion offshore that they can bring into the US cheaply now, because of the GOP corporate tax reduction from 35% to 15%. The GOP assured us that this gigantic inflow of money would trickle down to workers in the form of wage increases and bonuses. Knowledgeable economists said this would not happen. So what is Apple doing with their cash? Lowering prices? Raising salaries on employees at Apple stores? Giving iPads to schools? No. Apple just announced a 16% increase in their dividend and a $100 billion buyback of their own stock. This is a HUGE windfall for Apple stockholders. The rich are getting richer. It is good to pause from time to time and reflect on how dishonest the Republicans are, and how naive their supporters are to keep believing the lies.

I’m no fan of GOP or trickle down ecanomics. Money will never get down to the lower classes. But on the economic side of things it’s great. That influx of money no matter who it goes to comes into the US and is then spent (or invested) on things within the US. Rather than just sitting off shore.

 

[sirozha]

Disappointed with the small bump in dividend. Yes Apple is one of the large dividend paying companies in total $ amount, however in overall yield they are pretty lousy (this kicks them up to 1.7% annual yield base on current price).

Better than the best bank account you can find.

Of course it escalated quickly. We are talking about a tax cut that promised Americans all kinds of wonderful things and that it would grow the economy.

The tax cuts were never designed to grow the economy. Tax cuts were designed to give the rich more money. If we wanted to grow the economy, we could have tied tax cuts to investment in our country. For example, if you want a tax cut, show you’re speeding up hiring. If you want a tax cut, show you’re building a factory.

The same thing happened under Bush when he did a tax holiday in 2004. Job growth was promised under Bush. Instead, companies repatriated money, cut jobs, and dis stock buy backs.

https://www.cnbc.com/2017/04/26/wha...ompanies-got-a-break-on-overseas-profits.html

America is a capitalist country in case you wondered.

 

[forcesteeler]

I’m all for tax cuts. But just like the tax cuts during the bush years. It’s borrowed on debt. At the end of the day tax payers I financing corporate tax cuts.

Let’s hope trickle down economics work this time. Because with Regean in 1987 and Bush in 2008 they all end up crashing the market. Maybe 3rd time is a charm? Let’s hope

 

[chizzlebot]

I take it you are disappointed that the CEO of the world’s most valuable company, who supported Hillary Clinton, is not meeting your ideological expectations? Likewise, it appears an Apple board member that won a Presidential popular vote as a democrat who also opposes Trump will not make your Christmas card list either.

While this matter is not a right or left issue (but you care to make it one), than blame your own party that manages this company and hold them responsible. If you would like to take a realistic approach, as the Apple board has, invest and stop complaining. You will never get “rich” demanding another's earned money.

This is highly illogical. I'm not an American and don't care for your politics. That said, the issue of wealth distribution has a complex history and both political sides have patronised the 'trickle down' ideology at one time or another. The simple fact OP presented is that the current republics have championed this current approach as benefiting average Americans and as OP pointed out, it is not bearing fruit with Apple as the example. While he may not be correct in the long run or this may not be a particularly compelling example of this policy going wrong, his point remains unchallenged by your response.

Who Apple supported is irrelevant, who is on Apples board is irrelevant. Apple is a private company that will do what suits their bottom line. You are building straw men to win an non existent argument that suits your apparent political allegiances.

 

[C DM]

Better than the best bank account you can find.

A number are offering around that or more even these days.

 

[Anonymous Freak]

The rich are getting richer.

I own exactly one share of Apple stock - I wonder how much my dividend will increase? Two cents? Three?