Apple Announces $100 Billion Share Repurchase Program

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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.

Top Rated Comments

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33 months ago
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.
Score: 23 Votes (Like | Disagree)
Avatar
33 months ago

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/what-happened-the-last-time-companies-got-a-break-on-overseas-profits.html
Score: 15 Votes (Like | Disagree)
Avatar
33 months ago

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.
Score: 8 Votes (Like | Disagree)
Avatar
33 months ago

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.
Score: 7 Votes (Like | Disagree)
Avatar
33 months ago

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.
Score: 6 Votes (Like | Disagree)
Avatar
33 months ago

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.
Score: 6 Votes (Like | Disagree)

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