Apple Could Benefit From a New Dividend and Buyback Increase

Apple’s stellar earnings for the first quarter, released on Jan. 27, will likely lead to a higher dividend per share declaration after March. This could also help push up AAPL stock even further. This is because the stock’s dividend yield goes up from the higher prospective dividend. Apple has now spent almost all of its $315 billion in authorized share repurchases. As of Dec. 25, it had spent $274.5 billion of this total. That leaves just $40.5 billion.

Earlier in the December quarter, the company already spent $20.48 billion in share buybacks. If it spends a similar amount in the quarter ending March 2022, that would leave just $20 billion for the June quarter. Typically, the company will announce a new buyback program before it runs out of authorization. This announcement will coincide with a new dividend increase. So sometime in the next month or so, expect to see Apple announce a dividend and share buyback increase. That will act as a major catalyst for AAPL stock.

Source: InvestorPlace

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