As part of its earnings report, Apple has announced an extension of its capital return program. Apple will buy $100 billion worth of its own stock. It will also increase the dividend by 16%.
With the new tax legislation in place, Apple has said that it aims to hold zero net cash. It currently holds about $270 billion in cash. It will spend its excess cash through returns to investors in the form of dividends and share repurchase, as well as investment into expansion and product development.
Apple stock is up more than 4% in aftermarket trading so investors appear to be pleased with the report. This is partly from its impressive capital return announcement, but also the fact it has defied many analysts gloomy expectations.
With the sixteen percent raise in dividend payments in mind, the company will pay $0.73 per share on May 17.