“Apple Inc. receives a lot of attention on its share repurchase program. Oddly, it is somewhat controversial, with some writers condemning it,” J. M. Manness writes for Seeking Alpha. “Many believe that Apple was hammered too hard, and still is undervalued. Others have noted that the company has gone from one of the greatest ever growth stories to a stabilized company with at best a very slow growth future. It has, of course, the most incredible income, and so has changed into more of a dividend investor’s stock.”
“There’s clearly some truth here. There is no way that Apple will repeat the exponential growth of the decade from 2004 to 2014 when revenues grew from just under $10 billion to $200 billion, an incredible 20 times. Obviously, this is impossible to sustain.,” Manness writes. “To dividend investors, however, growth is less important. They want steady, dependable and increasing dividends at a good rate (yield).”
“Viewing dollars spent in repurchasing shares as equivalent to dividends may not be appropriate to all investors, particularly those who want immediate incom,” Manness writes. ” However, it may be for some who are ready to view it as dividends reinvested in stock purchase. Viewing in this light makes Apple much more attractive to the dividend investor.”
Much more in the full article here.
MacDailyNews Note: Apple plans to provide investors with our annual update on the capital return program in the spring.