Apple announced on Tuesday that it is launching a new share repurchase plan of $100 billion. The company also announced a 16% increase in quarterly dividends. The announcement came as part of the company’s second quarter earnings release.
“Our business performed extremely well during the March quarter, as we grew earnings per share by 30 percent and generated over $15 billion in operating cash flow,” said Luca Maestri, Apple’s CFO. “With the greater flexibility we now have from access to our global cash, we can more efficiently invest in our US operations and work toward a more optimal capital structure. Given our confidence in Apple’s future, we are very happy to announce that our Board has approved a new $100 billion share repurchase authorization and a 16 percent increase in our quarterly dividend.”
Apple expects its previous $210 billion share repurchase authorization to wrap up by the end of the current quarter.
The company also declared a cash dividend for the quarter.
Reflecting the approved increase, the Board has declared a cash dividend of $0.73 per share of Apple’s common stock payable on May 17, 2018 to shareholders of record as of the close of business on May 14, 2018.
The Company also expects to continue to net-share-settle vesting restricted stock units.
The Cupertino firm’s share buyback program will likely be financed, at least in part, by repatriated overseas cash. Recent tax reforms in the United States allow Apple to bring its overseas cash stash back home at a lower tax rate.