Making the case for doubling Apple’s share buyback pace

“Next week, Apple will provide an update to its capital return program,” Neil Cybart writes for Above Avalon. “In what has become an annual tradition, the announcement will include a sizable increase to Apple’s share repurchase authorization and a hike in the quarterly cash dividend.”

“Given recent management commentary, Apple’s overall thought process regarding capital allocation is already known,” Cybart writes. “The only way Apple will be able to accomplish its capital return goals is by doubling the pace of share buyback from current levels.”

Cybart writes, “A realistic and prudent way for Apple to remove this excess cash from the balance sheet is to double the pace of share buyback (from $30 billion to $60 billion) while gradually increasing the amount spent on dividend expense over time.”

Much more in the full article here.

MacDailyNews Take: Batten down the hatches!

SEE ALSO:
Apple dividend hike looms – April 9, 2018

6 Comments

  1. If past is, indeed, prologue to next week’s earnings announcement . . . AAPL will drop even further on good/great/record news OR anything short of those levels. The recent 20 point drop (from 184) has been based entirely on rumor, speculation, innuendo, guesswork, and unattributed analyses of company parts providers. So, given how much market movers and shakers absolutely loathe AAPL—even in the best of times—we’re not holding our collective breath for any uptick next week, no matter what Tim and Company announce. (And that, to put it mildly, is not easily said, given our 40K shares.)

  2. Tim Cook is letting the world pass this great company. He has destroyed ITunes. No stickiness there anymore. ITune was 4 years late subpar and overpriced. No stickiness there. He doesn’t push Apple email like Gmail so no stickiness there. No streaming no books on tape subscription really nothing but hardware and iCloud storage. He has left iWork to rot. So as tech moves away from phones to other devices Apple will lose. And they just discontinued routers. Wouldn’t that have been a perfect product for HomeKit? Sadly this is 2013 All over again. Apple needs to get fresh hungry new leaders.

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