Apple’s new debt deal could mean more shareholder rewards after string of blowout earnings

Apple hit the bond market on Thursday, with a four-part debt deal, focused ion keeping its mega shareholders’ capital return program flowing, after the compnay earlier this week reported yet another quarter of blockbuster earnings.

Apple logo

Joy Wiltermuth for MarketWatch:

The Cupertino, Calif. company expects to sell the bonds, which mature in seven, 10, 30 and 40 years on Thursday, with proceeds earmarked for general corporate purposes, including to repurchase stock and to pay of dividends, the company said in a public filing.

“We expect Apple AAPL, +0.46% to use the proceeds for shareholder returns and to a lesser extent debt repayment,” Jordan Chalfin, senior technology analyst at CreditSights, wrote in a Thursday note. “The company has $72 billion net cash as of the most recent quarter and has a long-standing goal to reach net cash neutral over time.”

Apple already returned $29 billion to shareholders in the June quarter, during the company’s earnings call. The shareholder rewards were split between $3.8 billion in dividend payments and $17.5 billion in stock repurchases.

MacDailyNews Take: Apple’s SEC filing is here.

3 Comments

  1. How about a .44 a share dividend with no buybacks, and save the balance for the future like the Norwegian Sovereign Wealth Fund. Having money doesn’t mean spending all of it like the UK did with the North Sea oil money.

    1. It’s not Apple’s money to keep. It’s shareholders’ money.

      Saving to invest in Apple’s future business / acquisitions is fine, as long as they have a plan.

      the rest of it, it’s up to the shareholders to decide what’s their personal risk level and strategy when it comes to general investing.

  2. I would like a higher dividend, but the big investors get their way as they have the most money in Apple. Apparently, share buybacks work best for big investors with millions of shares. The little retail investor will have to keep waiting to see Apple gains until all the buyback cash is gone at the end of the year. I don’t mind waiting, but I don’t think many investors like to wait months to see gains.

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