Apple's Subtle Method to Build Shareholder Value Is Working

While Apple's (NASDAQ: AAPL  ) product releases are undoubtedly a major driver for Apple's stock, the company is creating value for shareholders in other areas far more imperceptibly: through dividends and share repurchases.

While Apple's dividend yield may be relatively small at just 2.3%, management's efforts to return cash to shareholders are extremely aggressive when you also consider Apple's share repurchases over the past 12 months. In that period, Apple has bought back a whopping $40 billion worth of its shares. Even more, in the weeks following a sell-off sparked by less than expected first-quarter iPhone sales, Apple opportunistically repurchased $14 billion worth of its stock.

In the following video, Fool contributor Daniel Sparks takes a closer look at how Apple is building shareholder value by buying back its own stock at excellent prices.

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  • Report this Comment On March 03, 2014, at 7:53 AM, fauxscot wrote:

    Long and staying.

    Good management, compelling products, excellent company, sane financials, and the icing on the cake?.... pick a product and use it. Features, quality, value, support, comprehensive ecosystem, resale value, experience,... all done well and in some cases, close to perfect. (Not all, of course, but where it counts, the composite, is unmatched.)

    Even more calories..... p/e in the dirt, fluffy overvaluation on the alternative tech companies (Amazon, Google), and 160 billion bux in the bank.

  • Report this Comment On March 03, 2014, at 9:05 AM, Resphigi wrote:

    In the first place, Apple's dividend is average for S&P 500 companies that pay a dividend. In the second place, there is nothing subtle about a share repurchase. What was the author's point again?

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