Apple spends a record $23.8B buying back its own shares — and saves cash in the process
Wednesday June 26, 2019. 06:01 PM , from Mac Daily News
Dion Rabouin for Axios:
Apple again led S&P 500 companies in buybacks, spending a new record $23.8 billion in Q1, more than doubling its spend from the previous quarter, data from S&P Global shows.
Apple has long been a buyback behemoth. The company holds 8 of the 10 all-time records for quarterly buybacks, and has spent more than $75 billion on buybacks over just the past year.
It has spent $234.7 billion over the most recent 5-year period, and $284.3 billion over the last 10-year period.
Apple accounted for 23% of share buybacks made by the top 20 S&P 500 companies.
Conor Grant for The Hustle:
By buying back stocks, Apple reduces the number of shares on the market, increasing the value of its remaining shares.
It’s a cheaper way to pay shareholders than issuing dividends: Unlike regular dividends, Apple issues buybacks whenever it feels like it.
Plus, buybacks enable Apple to get rid of cash it would otherwise pay taxes on, boosting stock prices AND warding off the tax man.
MacDailyNews Take: These are mind-boggling numbers. Apple spent nearly a quarter of a trillion dollars on buybacks over the past 5 years!
Dec, Fri 13 - 13:34 CET