Here is the updated capital repatriation program.
More cash for shareholders
The seventeenth annual dividend increase since the introduction of Apple's dividend in 2012, according to the tech giant, the annual dividend by 5%. Although the increase is small, it comes to a strong dividend increase of 16% last year.
The new quarterly dividend is $ 0.77 and is payable on May 16 to shareholders registered by close of business on May 13. With a new dividend of $ 3.08 per annum, Apple shares receive a dividend yield of 1.5% based on the share's share price following the technology giant's earnings in the second quarter.
The board of Apple also announced a significant increase in share buyback program. "Given our confidence in the future of Apple and the value we see in our stock, our board has approved an additional $ 75 billion for share repurchases," said Luca Maestri, Apple's CFO. While this amount is below the $ 100 billion approved last year, it is notable as it represents an incremental approval – no replacement.
<h2 class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Apple wants net cash become neutral "data-reactid =" 30 "> Apple wants to be net cash neutral
Apple CFO Luca Maestri reiterated in the second quarter that the company still intends over time to achieve a net cash position. This means that Apple wants to have an equal amount of debt and cash at some point.
With $ 113 billion in net cash at the end of the second fiscal quarter, it will take some time for this value to fall. However, the company is making headway towards this goal as Apple paid back to shareholders over $ 27 billion in repurchases and dividends in the second quarter of the fiscal year, a period in which operating cash flow was $ 11.2 billion , Apple's net cash has dropped significantly from the end of the first quarter of fiscal 2019 of $ 130 billion.
How and when Apple will reach a net net cash position over time is unclear. But more buybacks in the next 12 months, as Apple pays a higher dividend, will likely bring the tech giant closer to its target.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – -sm Mt (0.8em) – sm" type = "text" content = " More from the Motley Fool "data-reactid =" 34 "> More from Motley Fool
<p class =" canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm "Motley Fool has Apple stock and recommends Apple." The Motley Fool has the following options: long January 2020 $ 150 for Apple and short January 2020 $ 155 for Apple.The Motley Fool has a disclosure policy. "data-reactid =" 42 "> Daniel Sparks has no positions in any of the above stocks. The Motley Fool owns shares of Apple and recommends Apple. The Motley Fool has the following options: long January 2020 calls of $ 150 at Apple and short January 2020 – $ 155 calls to Apple. The Motley Fool has a disclosure policy.