Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Apple's Subtle Method to Build Shareholder Value Is Working

By Daniel Sparks - Mar 3, 2014 at 7:00AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Apple is buying itself. Here is why shareholders should care.

While Apple's ( AAPL 2.28% ) 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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$175.08 (2.28%) $3.90

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
652%
 
S&P 500 Returns
142%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.