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| Apple Building |
Apple just announced a
hefty, $50 billion, four-quarter expansion of its plan to return capital to
shareholders, helping to mitigate investor disappointment to
weaker-than-expected revenue results in its most recent quarter.
The bulk of the plan is an additional $35
billion in stock buybacks, bringing the company's total share repurchase
plan to $210 billion. Apple also said its board has approved a 10.5% increase
in the company's quarterly dividend. Overall, Apple said it plans to spend $300
billion by March 2019.
The news comes as part of Apple's latest quarterly earnings report
from business insider in which the
company's revenue fell slightly short of Wall Street estimates, with flat iPhone
sales and declining Mac and iPad businesses.
Following Apple's earnings report, the
company's stock was down about 2% in after-hours trading on Tuesday. The
expansion of the stock buyback plan is likely intended to bolster Apple's share
price — a tactic big companies often use, taking
advantage of its $256.8 billion cash hoard to keep investors happy.
Here's a chart showing Apple's buyback
plan to date:
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| RBC Capital Markets |
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