Apple, Inc. (NASDAQ:AAPL) delivered a sweet surprise to investors on Thursday with its robust shareholder return strategy, propelling its stock sharply higher. The magnitude of the move is so significant that it dwarfs the valuation of some big companies.
What Happened: Apple unveiled an expansive buyback program, authorizing the repurchase of an additional $110 billion of its common stock. Furthermore, the company announced a 4.2% increase in dividends to 24 cents per share.
To put the magnitude of the buyback into perspective:
- It stands as the largest buyback in U.S. corporate history in terms of value.
- The value eclipsed the market capitalizations of 419, or roughly 84%, of the S&P 500 companies.
- Notably, esteemed blue-chip entities like Boeing, Starbucks, PayPal, Northrop Grumman, Ford, and eBay now boast lower valuations than Apple’s latest buyback offering.
- Only 66 out of 195 global nations possess GDPs exceeding $110 billion, according to Worldometer.