Apple (NASDAQ: AAPL) does a masterful job of repurchasing its stock. While many technology companies use their free cash flow to buy back shares, most barely offset the dilution created by share-based compensation to executives and other employees. Apple, however, has retired a meaningful percentage of its stock over the years.
As good as Apple is at repurchasing shares , Marathon Oil (NYSE: MRO) might be even better. After accelerating its repurchase pace last year, the oil stock has gobbled up more shares during the previous five years than the tech giant. That strategy could enable the company to put up Apple-like total returns in the coming years.
Apple is a cash-flow machine. The tech titan grew its operating cash flow by over $18.0 billion last year to more than $122.0 billion. It returned the lion's share of that money to shareholders by repurchasing $89.4 billion of its stock and paying $14.8 billion in dividends. Those repurchases have reduced the company's outstanding shares by almost 2% over the past year.
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This Oil Stock Is Beating Apple at Its Own Game