“Apple repurchased a record $18 billion worth of its own stock during the three months of 2014, making it the ‘poster child’ for an ongoing trend in Corporate America, according to a report released Wednesday,” Ben Rooney reports for CNNMoney.
“The companies in the S&P 500 spent a combined $159.3 billion to buy back their own stock stock during the first quarter of 2014, according to preliminary figures from S&P Dow Jones Indices. That’s up 59% from the same period 2013,” Rooney reports. “It was also $30 billion more than what those companies spent in the fourth quarter.”
“By reducing the number of shares outstanding, companies are able to report higher earnings per share because profits are spread among fewer shareholders,” Rooney reports. “The iPhone maker’s buybacks reduced the company’s overall share count by 7% over the past 12 months. That boosted earnings per share by 7% in the first quarter… Apple announced plans in April to increase its share repurchase program to $130 billion, up from $100 billion. The company also hiked its dividend by 8% to $3.29 per quarter, up 24 cents from the previous $3.05.”
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